Markets and finance
Despite the strong demand for clean energy and an abundance of capital available worldwide, securing favourable financing arrangements for hydropower development is a challenging and complex task, which needs to be specifically tailored for each project.
The reasons for this are multidimensional as financing is contingent on a variety of factors, such as hydrology, and environmental and social considerations, which impacts a project’s risk-reward profile.
Preparation facility model
A significant barrier to private sector investment in hydropower is the financial risk associated with rigorous and complex planning and assessments, with no certainty for investors that a project will be given permission to proceed.
We are promoting a new hydropower project preparation facility model, which could help investors, developers and governments get new projects off the ground, by ensuring that each one is selected according to recognised sustainability criteria and national and regional development needs. Read more.
An innovative new investment instrument, green bonds are fixed income loans for the finance and refinance of projects and assets that help address environmental and climate risks.
We are working with partners to agree recognised eligibility criteria for green bonds to fund hydropower projects. Read more.
Join the network
Members interested in contributing to the development of the Hydropower Preparation Facility concept or learning more about green bonds should join IHA’s Markets and Finance Knowledge Network. The network focuses on building and sharing knowledge on key trends and developments in hydropower financing.
IHA members can access the knowledge network in Hydropower Pro, our online member community.
In the online group, network members can connect with each other, exchange experiences and access essential resources, briefings and case studies.
Latest associated content
Mike Muller is the commissioner of South Africa's National Planning Commission. Speaking in May 2015 at the World Hydropower Congress, he discusses the case for hydropower's inclusion in climate funding.Type:Blog postDate:20 August 2015
We are pleased to announce the results of the election of the IHA Board to serve for the period to October 2017.Type:News postDate:31 July 2015
The 2015 World Hydropower Congress took place on 19–21 May in Beijing, China, bringing together over 1,000 representatives of government, the finance sector, civil society, academia and industry to discuss a sustainable pathwayType:Blog postDate:12 June 2015
The 2015 World Hydropower Congress has drawn to a close. Here we take a look at the highlights of the final two days of the congress.Type:Blog postDate:20 May 2015
The 2015 World Hydropower got under way at the iconic Sunrise Kempinski Hotel at Yanqi Lake, Beijing, China on Tuesday 19 May. Here are some of the best moments from the opening day.Type:Blog postDate:19 May 2015