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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.

Green bonds

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.


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Latest associated content

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    The 2015 Hydropower Status Report is now available for download, providing comprehensive insights into new global developments in the sector, statistics on new installed capacity, detailed regional analysis, and more.

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  • Mike Muller

    Video: "If you are a climate fund, you should be funding hydropower"

    Mike Muller is the commissioner of South Africa's National Planning Commission. Speaking in May 2015 at the World Hydropower Congress, he discusses the case for hydropower's inclusion in climate funding.

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  • Brazil map

    How will Brazil's energy mix evolve?

    Hydropower generation has always dominated the Brazilian energy matrix. It stands out from other sources due to its low cost and intrinsic characteristics.

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