Improving Financial Mechanisms for Attracting Private Investment in The Hydropower Sector

This article examines financial mechanisms for attracting private investment into hydropower using recent global and Uzbek evidence. The analysis draws on IHA, IRENA, World Bank, IFC and official Uzbek sources. The findings show that project finance, long-term PPAs, blended finance, partial guarantees, enabling-infrastructure support and green capital-market instruments should operate as a coordinated financing package. Based on the experience of Nepal, Türkiye and India, the paper proposes for Uzbekistan a portfolio-based model combining sponsor equity, long-term local bank debt supported by development-finance resources, risk-sharing instruments and post-commissioning green-bond refinancing.