Project financing of hydropower projects in developing countries

While a large number of independent power projects based on fossil fuels have successfully reached financial close, IPPs based on hydropower have been less abundant. There is no inherent reason why this should be so, but hydro schemes do present different challenges that make them difficult to fit into standard project financing models. Once the special risks of hydro have been recognised and appropriately allocated, it may be possible to realize the potential of this clean power source in the developing world. Øyvind Ulfsby