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Managing Financial Risks from Hydropower
Article

Managing Financial Risks from Hydropower


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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

Hydropower is affordable and environmentally friendly, but it has one major drawback – its reliance on rainfall. In periods of low water supply, hydropower producers have to import energy, at some cost, and governments often must intervene. Energy economists Luciano Canale, Gazmend Daci, Hilda Shijaku and Christoph Ungerer of the World Bank discuss ways of making hydropower more reliable and cost-efficient. Anyone interested in financing alternative energy sources will find this report illuminating.

Take-Aways

  • Hydropower is a favored form of renewable energy across the globe, but rainfall can be variable.
  • Countries need to implement measures to limit their financial exposure to insufficient hydropower.
  • Fundamental changes will require time and significant new investments in energy infrastructure.

About the Authors

Luciano Canale et al. are energy specialists and economists at the World Bank.