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
Even when countries have a wealth of untapped hydropower potential available, why can it still remain a challenge to entice financial investors to become involved?Type:Blog postDate:7 October 2013
Download the latest issue of Currents magazine
The October 2013 issue of Currents magazine brings together voices from across the hydropower sector.Type:News postDate:1 October 2013
Difficulties in recruiting a skilled workforce locally has led to the creation of an inspiring and empowering professional education programme.Type:Blog postDate:1 October 2013
Located some 96 km from Da Nang City, the commercial and educational centre of Central Vietnam, Song Bung 4 project is one piece of Vietnam’s energy puzzle, as the country faces an energy demand that grows at an average rate of 15 per cent per yeType:Blog postDate:25 September 2013
We are conducting research and analysis to investigate both barriers to hydropower development around the world, and policies that shape the general investment climate.Type:Blog postDate:25 September 2013