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
Video: "This requires a real vision for the power system at a regional scale" – Jean-François Astolfi
Jean-François Astolfi, EDF vice-president, discusses hydropower and the difficulties faced by developing countries, ahead of the World Hydropower Congress in Beijing (19–21 May 2015).Type:Blog postDate:4 December 2014
Type:Blog postDate:3 December 2014
An initiative in Uganda seeks to help agricultural development by encouraging the implementation of small hydropower projects that deliver electricity to farmers, agribusiness, and other customers in the area surrounding the powType:Blog postDate:21 November 2014
Junaid Ahmad is the senior director of the World Bank’s Global Water Practice. In this video interview, he spoke with us about the investment case for hydropower and the world in 2050.Type:Blog postDate:7 November 2014
Hydropower developer NuPlanet has begun construction of the 4.5 MW Stortemelk station near Clarence in the Free State Province, South Africa, after agreeing financing on the project.Type:News postDate:7 November 2014