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
The International Hydropower Association (IHA) is embarking on an ambitious new strategy and work plan to support socially and environmentally responsible hydropower projects.Type:News postDate:22 September 2017
Three French energy associations, representing hydropower producers across France, have described seven steps they believe can boost France's hydropower sector.Type:News postDate:18 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
The 2017 World Hydropower Congress took place on 9–11 May in Addis Ababa, Ethiopia.Type:Blog postDate:31 May 2017
This article is featured in the 2017 Hydropower Status Report, launched at the World Hydropower Congress in Addis Ababa in May 2017.Type:Blog postDate:22 May 2017