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
The 2017 World Hydropower Congress opened at the United Nations Conference Center in Addis Ababa on Tuesday 9 May.Type:News postDate:9 May 2017
The 2017 Hydropower Status Report was launched at the opening of the World Hydropower Congress in Addis Ababa on Tuesday 9 May.Type:News postDate:9 May 2017
Uwe Wehnhardt is president and the chief executive officer of Voith Hydro, having taking up the role in January 2016.Type:Blog postDate:12 April 2017
The private sector plays a critical role in hydropower development, both in providing the necessary technical skills but also as a source of project financing.Type:Programme itemDate:12 April 2017
31.5 GW new hydropower capacity commissioned worldwide in 2016, pumped storage development accelerates
31.5 GW of new hydropower capacity was commissioned in 2016, according to estimates in our new briefing, 2017 Key Trends in Hydropower.Type:Blog postDate:22 March 2017