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
Elsbeth Tronstad is executive vice president of SN Power for corporate social responsibility, environment, communications and human resources. She speaks about the business case for sustainability in hydroelectric projects, and the importance for companies to get it right.Type:Blog postDate:5 May 2014
In February 2014, Canadian utility Manitoba Hydro announced a memorandum of understanding with US power co-operative Great River Energy to jointly investigate the sale of up to 600 MW of electricity from new hydropower projects.Type:Blog postDate:2 May 2014
Philipp Hauser is vice president carbon markets at GDF Suez Energy Latin America.Type:Blog postDate:4 April 2014
A recent report from researchers at Oxford University questions the economic viability of large-scale hydropower development, highlighting cost and schedule overruns.Type:Blog postDate:13 March 2014
The China Institute of Water Resources and Hydropower Research (IWHR) and IHA extended their collaboration by renewing their co-operation agreement last week, 26 February.Type:News postDate:4 March 2014