Published on September 11th, 2012 | by Mridul Chadha1
Renewable Energy Investment Attractiveness: China Continues at #1, US Suffers from Policy Slump, Germany Climbs to #2
According to the recent Global Renewable Energy Country Attractiveness Indices Report (CAI) released by Ernst & Young, China continues to dominate the global renewable energy sector. The survey grades 40 nations based on their renewable energy markets, renewable energy infrastructure, and their suitability for individual technologies.
Even though dropping by 0.2 points from the last index in May, China manages to be on the first spot of All Renewable Index (ARI) by scoring 70.2 points. Chinese government has very attractive policies for the deployment of renewable energy infrastructure. It aims to add 100 GW of wind energy capacity and 21 GW of solar power capacity by 2015.
Growing uncertainty over the long-term renewable energy goals of the US government to tackle climate change pushed the US to second place. The US shares the position with Germany, with each scoring 66 points. Huge investments in the German offshore wind energy sector and solar sector has helped Germany to reach the second spot. Until recently, the US was marginally leading Germany in the second spot in the renewable energy investment attractiveness index.
Gil Forer, Ernst & Young’s Global Cleantech Leader says, “While the US and German markets are level within the ARI, the contrast between these two markets is evident. The upcoming elections have led to an understandable slowdown in the decision making process in the US, while Germany is pushing ahead with its ambitious renewable energy agenda including the introduction of a new solar PV tariff and compensation for offshore grid connection delays.”
“Having made positive progress, the challenge now facing Germany is making sure that the necessary infrastructure is in place to ensure the renewable power generated in the north of the country can be shipped to customers in the south. It is important for any country not only to focus on policies that support supply, but also on those that will encourage and simulate demand.”
India came fourth in the ARI, scoring 64.1 points, UK fifth with 55.3 points, followed by France, Italy, Canada, Japan, and Brazil. India lost one point from the last index due to recent severe blackouts causing speculation that the country has not attracted private investments to modernize its power infrastructure.
Image: Leaflet | Wikimedia Commons
The views presented in the above article are author’s personal views only