This report aims to enhance the understanding of energy sector regulators and policymakers, government agencies, developers, and banks of the status of private sector solutions available to develop large hydropower projects. To that end, the report first looks at (a) past investment trends and (b) findings from the interviews carried out with key stakeholders to provide (c) recommendations drawn from this consultative exercise together with actionable initiatives for DFIs to improve private sector solutions in large hydropower. The report summarizes the literature review, desk research on past investment trends, and interviews with a sample of 23 key stakeholders in LMICs—project developers, government officials, private investors, representatives from development financial institutions, commercial lenders, service providers, and export credit agencies. Interviews were carried out between July and October 2023. The interview topics included (a) drivers of private sector interest in large hydropower projects, (b) key risks and corresponding mitigation strategies, (c) emerging financing practices of interest for large hydropower financing, and (d) how Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs), such as the World Bank Group, can facilitate private sector participation in large hydropower projects.
Authors
- Citation
- “ Energy Sector Management Assistance Program . 2024 . Leveraging Private Sector Solutions in Large Hydropower Projects . © Washington, DC: World Bank . http://hdl.handle.net/10986/42375 License: CC BY-NC 3.0 IGO . ”
- Collection(s)
- ESMAP papers
- Identifier externaldocumentum
- 34414673
- Identifier internaldocumentum
- 34414673
- Pages
- 52
- Published in
- United States of America
- Report
- 194444
- Rights
- CC BY-NC 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by-nc/3.0/igo
- UNIT
- Infra - Global Knowledge (IEEGK)
- URI
- https://hdl.handle.net/10986/42375
- date disclosure
- 2024-11-07
- region geographical
- World
- theme
- Adaptation,Mitigation,Energy,Energy Policies & Reform,Environment and Natural Resource Management,Climate change
Files
Table of Contents
- Leveraging Private Sector Solutions in Large Hydropower Projects 1
- Rights and Permissions 2
- Acknowledgments 3
- Abbreviations Acronyms 4
- Table of Contents 5
- Table of Figures 6
- Executive Summary 7
- Introduction 10
- Private Sector Participation in Hydropower 12
- Survey Sample 15
- Survey on Private Sector Participation in Hydropower 15
- Stakeholder Mapping for Private Hydropower Projects 16
- Stakeholder Perspectives of Risks and Opportunities in Large Hydropower 17
- Private Sector Interest in Large Hydropower 21
- Preferred Geographies for Private Sector Involvement in Large Hydropower 23
- Private Sector and Non-Conventional Hydropower 23
- Private Project Development Approaches 24
- Capital Recycling as a Means to Unlock More Capital for the Construction Phase 26
- Climate Bond Initiative CBI and Hydropower Example of Costa Ricas Reventazon Hydropower Plant 29
- Development Finance Institutions Role in Promoting Private Sector Participation in Large Hydropower 32
- Support Government Efforts to Improve the Enabling Environment 32
- De-risking Project Preparation and Development 34
- De-risking Project Financing 36
- Promoting Financial Mechanisms to Scale Up Private Investments 37
- Conclusion 39
- Approach to Identifying the Survey Sample 40
- Survey Questionnaire 42
- References 45
- Photo Credits 50
