The World Bank Group Approach Paper on Hydropower Development

Overview & Synopsis

Ensuring access to reliable, affordable, and modern energy is central to the World Bank Group’s mission, with hydropower playing a critical role in supporting economic growth, job creation, and essential public services. Hydropower contributes to energy security by providing reliable electricity, storage, and system flexibility, while enabling integration of variable renewable energy sources. Global demand requires significant expansion and modernization of hydropower capacity, particularly in low- and middle-income countries, where it can strengthen resilience to climate-related shocks and support water resource management. The World Bank Group supports sustainable hydropower development through strong environmental and social frameworks, emphasizing risk management, stakeholder engagement, and inclusive benefit sharing. It combines upstream policy and institutional support with project-level financing, technical assistance, and risk mitigation instruments. Leveraging partnerships with IFC and MIGA, the WBG mobilizes public and private capital to scale investments, improve project bankability, and promote resilient, low-carbon energy systems aligned with national development priorities.