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
Elsbeth Tronstad is executive vice president of SN Power for corporate social responsibility, environment, communications and human resources. She speaks about the business case for sustainability in hydroelectric projects, and the importance for companies to get it right.Type:Blog postDate:5 May 2014
In February 2014, Canadian utility Manitoba Hydro announced a memorandum of understanding with US power co-operative Great River Energy to jointly investigate the sale of up to 600 MW of electricity from new hydropower projects.Type:Blog postDate:2 May 2014
Philipp Hauser is vice president carbon markets at GDF Suez Energy Latin America.Type:Blog postDate:4 April 2014
A recent report from researchers at Oxford University questions the economic viability of large-scale hydropower development, highlighting cost and schedule overruns.Type:Blog postDate:13 March 2014
The China Institute of Water Resources and Hydropower Research (IWHR) and IHA extended their collaboration by renewing their co-operation agreement last week, 26 February.Type:News postDate:4 March 2014