Financing sustainable hydropower: an introduction to concepts and terminology

This paper provides an overview of the key terms and concepts that are relevant for hydropower finance in low- and lower-middle income countries. The purpose is to provide basic knowledge of the key concepts required to engage with the more complex material on hydropower project development and finance in these country contexts. The discussion focuses on large hydropower projects. While many of the terms used are the same as for small hydropower, there is a need for further research on the financing of small hydropower projects. Within the term ‘large hydropower projects’, the paper also includes pumped-storage hydropower projects.