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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.

Our action

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.

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Latest associated content

  • New horizons

    New horizons

    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 post
    Date:
    7 October 2013
  • Download the latest issue of Currents magazine

    Download the latest issue of Currents magazine

    The October 2013 issue of Currents magazine brings together voices from across the hydropower sector. 

    Type:
    News post
    Date:
    1 October 2013
  • The power of belief

    The power of belief: breathing life into communities

    Difficulties in recruiting a skilled workforce locally has led to the creation of an inspiring and empowering professional education programme.

    Type:
    Blog post
    Date:
    1 October 2013
  • Song Bung 4

    In focus: Technical review of Song Bung 4

    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 ye

    Type:
    Blog post
    Date:
    25 September 2013
  • Risk and finance

    Making sense of risk and finance

    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 post
    Date:
    25 September 2013

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