Abstract

Hydropower has a crucial role to play in a zero carbon future and particularly in balancing intermittent renewable electricity and strengthening the grid. Governments around the world are continuing to seek greater private sector involvement in hydropower development. This is particularly the case in developing countries where public funds are scarce with many competing priorities and there is a need to utilise the technical expertise of the private sector. However, to date it remains difficult to attract private investment in developing countries as hydropower’s risk profile is poorly understood by many banks who have only limited experience of similar investments. The circle of lack of experience, poor understanding of risk and reluctance to invest is difficult to break.

With the need for private sector investment only to increase in the future, this session will discuss and debate whether traditional models still have a role in the sector and what new innovative financing structures have a role in sustainable financing for dams. In addition, there is a need to explore what mitigation tools are available to help ensure that all stakeholders including governments, development finance institutions, lenders and developers accept a fair allocation of risk.