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
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
The IHA annual issues survey is an initiative that aims to monitor the key issues facing hydropower, identify policy developments around the world that affect the sector, and ensure that our work programme reflects the issues thType:Blog postDate:10 February 2017
The World Bank Group is an organising partner of the 2017 World Hydropower Congress, which will take place on 9–11 May in Addis Ababa.Type:Blog postDate:2 February 2017