Leveraging Private Sector Solutions in Large Hydropower Projects

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.