Despite the strong demand for clean energy, securing favourable financing for hydropower development is a challenging and complex task.

According to the International 能源 Agency, hydropower investment needs to double to US$100 billion a year to help meet the objectives of the Paris Agreement and the Sustainable Development Goals.

This level of investment would support an additional 850 GW of hydropower capacity being commissioned by 2040. Much of this investment is needed in developing countries throughout Africa and Asia.

Many market and policy frameworks however do not adequately incentivise investment in greenfield developments. Services that hydropower provides, particularly pumped storage hydropower, are not fully recognised nor adequately remunerated. This is despite the services provided by pumped storage facilities being vital to integrate variable renewables into power grids.

The International Hydropower Association (IHA) works with developers, 投资者, international financial institutions and NGOs to unlock greater investment for sustainable hydropower.‍

In an effort to promote investment in sustainable hydropower in key African markets, we are working with the finance and legal community on a guide to assist developers and 投资者 navigate critical legal and bankability issues. This guide is due to be published in early 2021.

通过 International Forum on Pumped Storage Hydropower, launched in November 2020, we are working with partners to devise policy recommendations to incentivise and de-risk the development of pumped storage.  

We are also working with partners to agree recognised eligibility criteria to fund hydropower projects through green bonds, an innovative new investment instrument. 绿色债券 are fixed income loans for the finance and refinance of projects and assets that help address environmental and climate risks. 

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