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
A new IHA briefing, 2015 Key Trends in Hydropower, shows that hydropower is continuing its strong growth trend with 36 GW of new capacity added in 2014.Type:Blog postDate:19 May 2015
Luiz Gabriel Azevedo, Jean-Étienne Klimpt and Dr Helen Locher have been announced at the winners of the 2015 Mosonyi Award for Excellence in Hydropower.Type:News postDate:19 May 2015
Hydropower is undergoing a worldwide renaissance; but what are the factors driving it? In this interview, Richard Taylor, chief executive of the International Hydropower Association, discusses the rate of deployType:Blog postDate:13 May 2015
How is hydropower financing changing, and how is risk managed in the sector?Type:Blog postDate:11 May 2015
Lei Zhang is an energy specialist at the Asian Development Bank (ADB), with a portfolio that covers projects in Bangladesh, Nepal, India and Bhutan.Type:Blog postDate:2 May 2015