Professional services giant EY has published its latest Renewable Energy Country Attractiveness Index, proving the old adage that, the more things change, the more they stay the same.
EY, or Ernst and Young, as it used to be more commonly known, has been publishing its quarterly Renewable Energy Country Attractiveness Index (RECAI) for some time now, but as its chief editor, Ben Warren, makes clear in his Chief Editor’s note, the changing landscape of the global energy sector requires a new way of looking at it. Subsequently, this edition of the RECAI is a “somewhat abbreviated version,” according to Warren, serving primarily to update readers on the plans to “update and refresh the RECAI.”
Nevertheless, even though it appears that the overall Index itself remains the same (check out our coverage of the last RECAI here and here, published in September), there were some highlights EY decided to point out.
And unsurprisingly, number one among them was the “move that surprised even the most optimistic US renewable energy advocates,” the decision by the US Congress in December to approve a five-year extension to a series of tax credits which included the wind Production Tax Credit and the solar Investment Tax Credit. Specifically:
The US$23/ MWh PTC, which expired in December 2014, is to be extended retroactively to the end of 2020, reduced by 20% annually between 2017 and 2019, then phased out completely. The ITC, worth 30% of the upfront cost of solar installations and previously scheduled to reduce to 10% after 2016, will remain at 30% for three years and then fall to 26% in 2020, 22% in 2021 and 10% in 2022 before being phased out completely.
Mexico also managed to garner some attention with the “passing of the much-awaited Energy Transition Law in December 2015” which EY says “has provided greater clarity around how Mexico plans to meet its ambitious target of 35% clean energy by 2024,” or the equivalent of around 28 GW.
South Africa doubled its tax rebate for energy saved, or self-generated, while the Brazilian Government is sticking to its energy priority guns, despite “reportedly heading for its worst recession in decades.” EY believes “there are signs Australia is finally warming up again” after “almost two years slipping down the RECAI rankings,” thanks almost solely to the ousting of former Prime Minister Tony Abbott.
EY also believes that in the wake of COP21, “2016 is expected to see the emergence of some new green giants” including Argentina, Iran, and Bangladesh.
The full Renewable Energy Country Attractiveness Index can be downloaded from EY.
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