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
We are taking the pulse of the hydropower sector at large in this year's annual issues survey. You are invited to take part.Type:Blog postDate:24 November 2016
The World Hydropower Congress is above all a catalyst for action.Type:Programme itemDate:13 October 2016
Hydropower development and operations requires a variety of expertise.Type:Programme itemDate:13 October 2016
Many countries are seeking a better understanding of climate change impacts – both positive and negative – and are beginning to build strategies and approaches to climate resilience into their plans for the development of new hydropower facilitiesType:Programme itemDate:13 October 2016
Properly planned hydropower projects can provide grid stability, energy storage and flexibility for balancing more variable renewable energy sources.Type:Programme itemDate:13 October 2016