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Preparation facilities

The challenge

Investment in hydropower will help the world meet the United Nations Sustainable Development Goals, including a target to deliver ‘sustainable energy for all’ by the year 2030.

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.

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Meanwhile, national governments want to ensure that hydropower fits well with local, national and regional strategies, and adheres to international good practice in sustainability.

A new model for project development focused specifically on hydropower is needed to assist governments and investors in selecting and preparing potential sites, which will support the growth of renewable energy at speed and scale.


Our strategy and action

IHA is promoting the establishment of a hydropower project preparation facility.

Since it was first proposed at the World Hydropower Congress in Ethiopia in May 2017, we have continued to engage in dialogue with a number of governments, developers, financial institutions and NGOs to bring forward the concept.

The Hydropower Preparation Facility model 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.

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Under the model, the facility would support the scaling-up of sustainable hydropower in developing countries by improving the quality of project preparation, facilitating financing and assisting the implementation of projects.  

Throughout 2019, working with partners including the World Bank, we will continue to build support for this concept and explore whether hydropower preparation facilities could be established in different regions around the world.


Recent activities

To learn more about our recent activities, read our Activity and Strategy Report for 2018-2019.

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Join the network

Members interested in contributing to the Hydropower Preparation Facility concept development can join our Finance and Investment Knowledge Network

Hydropower Pro

IHA members can access the knowledge network in Hydropower Pro, our online member community.

In the online group, network members can connect with each other, exchange experiences and access essential resources, briefings and case studies.

For any questions, please contact IHA senior analyst Nick Troja at


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