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
IHA publishes 2020 Hydropower Status Report and Covid-19 paper
28 May 2020Type:News postDate:28 May 2020
18 May 2020Type:News postDate:18 May 2020
Sustainability assessment tools have been enhanced to better align with ESG requirements set by international financial institutions such as IFC and the World Bank.Type:News postDate:7 May 2020
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