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Commercial Loans for Financing a Hydropower Projects

The development of hydropower, which began in the second half of the 19th century, ensured stable economic growth for years to come. Loans for hydropower project plants continues in a green transition era, with many nations moving away from fossil fuels and nuclear power.

Havelet Finance Limited offers international loans for hydropower projects in different countries. Our specialists develop optimal financial models and customized solutions for each project.

            Hydropower plant projects
                                     Loans for Hydropower Plant projects

Bank Loans for hydropower plants Projects

The understand importance of long-term bank loans in the construction of hydropower  plants project, one must first assess the scale of costs and the capital needs of companies initiating large hydropower projects. Today, hydropower are considered among the most expensive generation technologies, with cost ranging from 2 to 5 million euros per 1 MW of installed capacity.

Moreover, hydropower plants are becoming more technologically advanced, which entails rising costs for new turbines, wireless sensor networks, digital control and monitoring systems, cloud computing and advanced security solutions. Measures to protect biodiversity, as well as costly policies aimed at social and environmental sustainability, also require significant investments at various stages of planning, construction and operation of HPPs. Long-term bank financing, especially with the support of local governments and international financial institutions, helps companies to meet these ambitious goals in the best possible way.

Havelet Finance Limited remains your most trusted backbone in loans for Hydropower Plants project. We can finance such project with 100% financing. Kindly contact us.

Commercial loans for hydropower Plant projects

Loans for hydropower Plants Project are widely used both to finance large investment projects and to replenish the working capital of companies. By definition, Loans for Hydropower Plants Project includes loans made to companies not to individuals (also known as business loans). In most cases, we are talking about short-term financing, which is almost always provided with collateral.

Typical commercial loan products are listed below:

• Working capital line of credit.
• Asset based business line of credit.
• Long-term equipment financing.
• Letters of credit.
• Bridge loans.
• Factoring

Asset-based lending is used by energy companies that already have certain assets but require additional working capital to develop and grow their business. This could be a flexible credit line that is used to purchase materials, and other purposes. Such loans are secured by some form of collateral, which may be hydropower assets, expensive equipment or infrastructure. A bridge loan, which is considered an auxiliary or intermediate financial instrument, is included in the group of short-term loans. The interest rate on a bridge loan is high, but there is a high demand for it in all industries.

The interest of governments is natural, because hydropower remains one of the most stable and predictable sources of electricity generation in industrialized countries. Moreover, 90% of the balancing capacity in the world is in pumped storage electricity and 10% in other technologies such as thermal power plants or batteries. It is a critical tool for balancing unpredictable green energy capacities in the grid, and the world will not introduce another model on an industrial scale in the near future. Each of the listed instruments of bank financing is designed to solve certain problems in the process of developing the energy business.

The right choice of funding method and loans for Hydropower Plants Project is one of the most important conditions for the prosperity of hydropower sector.

Soft Loan for Hydropower Plants

Promoting small hydropower projects is one of the policy instruments in the National Policy for Hydropower Development of India to accelerate the pace of hydropower development. The Ministry of Non-Conventional Energy Sources (MNES) deals with all matters related to Small Hydel Projects (up to 3 MW capacity).

A soft loan Includes:

  1. A loan with a below-market rate of interest.
  2. Loans made by multinational development banks and the World Bank to developing countries.

Typically, soft loans have extended grace periods in which only interest or service charges are due. They also offer longer amortization schedules and lower interest rates than conventional bank loans.

Havelet Finance Limited offer long-term loans for hydropower plants Project and related infrastructure. We provide a full range of financial and consulting services in every part of the world. Contact us for a consultation and to learn more about financing options.

We offer a wide range of services for business:

• Project finance services
• Financial modeling and consulting.
• Loan guarantees and much more.

We support the financing of large projects develop advanced financial models for our clients and offer professional advisory services.

Loan, Project Finance & Monetization Solutions


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