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
This case study is featured in Better Hydro: Compendium of Case Studies 2017, which highlights examples of good practice in hydropower sustainability across all aspects of project development.Type:Blog postDate:17 July 2017
Hydropower continues to be a catalyst for growth around the world as it remains the dominant form of renewable energy, having contributed over 16 per cent of the globe’s electricity production in 2016.Type:Blog postDate:27 June 2017
Global declines in water storage are increasingly troubling. With greater hydrological variability due to climate change, more storage will be vital to provide the same level of security of water, food and energy.Type:Blog postDate:8 June 2017
The 2017 World Hydropower Congress took place on 9–11 May in Addis Ababa, Ethiopia.Type:Blog postDate:31 May 2017
IHA participated in the second biennial Dresden Nexus Conference (DNC) on 17-19 May. The conference brings together researchers and implementers to discuss the closely linked issues of water, soil and waste.Type:Blog postDate:31 May 2017