Markets and finance
Despite the strong demand for clean energy and an abundance of capital available worldwide, securing favourable financing arrangements for hydropower development is a challenging and complex task, which needs to be specifically tailored for each project.
The reasons for this are multidimensional as financing is contingent on a variety of factors, such as hydrology, and environmental and social considerations, which impacts a project’s risk-reward profile.
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.
Join the network
Members interested in contributing to the development of the Hydropower Preparation Facility concept or learning more about green bonds should join IHA’s Markets and Finance Knowledge Network. The network focuses on building and sharing knowledge on key trends and developments in hydropower financing.
IHA members can access the knowledge network in Hydropower Pro, our online member community.
In the online group, network members can connect with each other, exchange experiences and access essential resources, briefings and case studies.
Latest associated content
First call for proposals announced with April 2020 application deadlineType:News postDate:18 February 2020
10 December 2019
A major new energy innovation project to demonstrate how smart hydropower technologies can deliver a low-carbon, reliable and resilient power system was launched today.Type:News postDate:26 January 2020
17 May 2019
Commitments underpin the renewable energy transition, manage climate risks and champion good practiceType:News postDate:17 May 2019
4 April 2019
The International Hydropower Association’s Activity and Strategy Report for 2018-2019 is now available online.Type:News postDate:4 April 2019
15 February 2019
Nominations are now open for the International Hydropower Association’s prestigious Mosonyi Award for Excellence in Hydropower.Type:News postDate:15 February 2019