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
Jean-Michel Devernay is the World Bank's chief technical specialist for hydropower.Type:Blog postDate:28 February 2014
Our annual activity report, Advancing Sustainable Hydropower, reviews our work in 2013 and outlines our vision for the future.Type:Blog postDate:18 February 2014
Some 20 senior representatives of our corporate members met in Brazil last week.Type:News postDate:4 February 2014
Gil Maranhão Neto is the director of business development at GDF Suez Energy Brasil. He spoke with us about the hydropower environment in the Amazon region, the role of the private sector and the impacts of IHA's work.Type:Blog postDate:4 February 2014
With Alexandre Uhlig, Instituto Acende, BrazilType:Blog postDate:3 February 2014