Finance and preparation
To meet global climate and sustainability goals, a major effort is needed to mobilise public and private sector investment in renewable technologies such as hydropower.
While a mature technology, securing favourable financing arrangements for hydropower development can be a challenging task, which needs to be specifically tailored for each project.
Developers are often faced with high upfront costs, rigorous and complex project preparation, environmental and social considerations, and services which are not adequately remunerated.
IHA is working across several fronts together with developers, investors, international financial institutions and NGOs to help mitigate the economic risks of hydropower development and unlock greater investment.
Through the promotion of the Hydropower Sustainability Tools and as part of the Climate Bond Initiative’s technical working group, we have contributed to the development of proposed hydropower eligibility criteria for climate financing for the growing green bond market.
We are also collaborating with international partners on the role of project preparation facilities and the policy and market changes needed to fully reflect hydropower’s contribution to evolving electricity systems.
In 2019, a new IHA study on project ownership study offered insights on the level of private sector involvement in hydropower. The study also analysed how a project’s size impacts its ownership model and the role of foreign direct investment.
Latest associated content
The IHA annual issues survey is an initiative that aims to monitor the key issues facing hydropower, identify policy developments around the world that affect the sector, and ensure that our work programme reflects the issues thType:Blog postDate:10 February 2017
The World Bank Group is an organising partner of the 2017 World Hydropower Congress, which will take place on 9–11 May in Addis Ababa.Type:Blog postDate:2 February 2017
At the end of 2016 we can look back on a year of progress for hydropower, with many development landmarks achieved around the world. We have compiled some of the most notable achievements by IHA member companies this year.Type:Blog postDate:19 December 2016
Hydropower, as an affordable, reliable and sustainable source of electricity, has played an important role in the growth and industrialisation of many emerging market economies such as Laos, Kenya, Sarawak (Malaysia), China (198Type:Blog postDate:14 December 2016
Gabriel Azevedo is a recipient of the Mosonyi Award for Excellence in Hydropower, an award that recognises individuals within IHA's membership for outstanding contributions to the sector.Type:Blog postDate:14 December 2016