Finance and preparation
Investors and developers face a diversity of challenges when preparing a hydropower project, while governments want to ensure that it aligns with national priorities and adheres to good practice in sustainability.
When preparing a project, hydropower companies must consider the location (e.g. hydrology), regulatory environment, financing arrangements and the local infrastructure in which they will operate.
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.
Latest associated content
Climate bonds and green bonds are examples of the emerging instruments for green finance and investment in the energy sector that could be used for hydropower. They are fixed income loans created to specifically finance and refinance projects andType:Programme itemDate:13 October 2016
It is widely recognised that the transition towards cleaner and more sustainable energy systems will require a significant increase in the flexibility of power systems.Type:Programme itemDate:13 October 2016
Single and multipurpose hydropower facilities can make substantial contributions at local, regional and national levels.Type:Programme itemDate:13 October 2016
Mitigating climate change is one of the most important goals for strategic sustainable development. There is a clear and pressing need to quantify the greenhouse gas footprint of all human activities.Type:Programme itemDate:13 October 2016
Historically, independent power producers (IPPs) have not been major players in the sector in sub-Saharan Africa. But with more supportive policies and innovative financing, that looks set to change.Type:Blog postDate:11 October 2016