A guide to hydropower plant development by the private sector in Iran

Hydropower plant development is, undeniably, a very complex undertaking, often lasting several years and requiring a large initial capital investment. As a consequence, such projects frequently run into difficulties raising the necessary capital. For this reason, investment in hydropower plants is a major issue for governments and power providers. There are numerous countries worldwide that have a significant albeit underutilized capacity for hydropower development. Iran is an example of such a country. It is a suitable candidate for the further development of hydropower mainly due to its favorable topological layout. That is, it is one of the world's most mountainous countries and also contains a number of major rivers and streams originating in the mountains. Due to inadequate investment schemes, however, the country is currently operating far below its actual hydropower potential. Focusing attention, therefore, on the method of funding such projects and the development of adequate economic models in the hydropower context is absolutely imperative.