- Category: Business
31 Aug 2012
- Published on Friday, 31 August 2012 11:22
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China is the most attractive site for renewable energy investors according to a recent ranking by Ernst & Young, beating the United States for the top spot.
In the All Renewable Index for August 2012, Ernst & Young assessed the attractiveness of 40 countries to investors in terms of renewable energy, with a special focus on wind and solar power projects.
China, despite the drop in points by 0.2 from the previous report in May, still outranked the U.S. in the race to draw in investors for clean energy, having 70.2 overall points.
A key factor is the move that quadrupled China’s solar generation target to 50 gigawatts by 2020, by which the Chinese government is addressing the oversupply of photovoltaic panels through accelerated domestic installations.
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Meanwhile, wind power in the country has been restrained by problems in gaining access to the national grid, according to the report.
The country could deliver about 40 percent to the global renewable energy capacity in the next five years, noted the International Energy Agency.
The U.S, losing 1.5 points to get 66 in the index, has to share the second place with Germany. The downfall is caused by the “ongoing uncertainty over the country’s long term renewable energy strategy.” Wind power developers in the U.S. are in face of the near expiration of tax that benefits the industry by the end of the year. All of these are affected by the upcoming November presidential elections, creating delays in the development of a concrete energy policy in the country.
Germany, on the other hand, “is pushing ahead with its ambitious renewable agenda,” said Ernst & Young. The efforts include the introduction of a new mid-size rooftop PV tariff and compensation for losses brought by offshore grid connection setbacks.
With 64.1, India obtained the fourth spot. The said-to-be worst blackouts it experienced recently led to a presumption that the country has attracted less investors and that renewable energy ventures might suffer regardless of its intensive energy reforms.
The United Kingdom placed fifth with 55.3 points, with a 0.1 point edge over France and Italy, which happened to tie at the sixth place. Canada, Japan and Brazil followed and filled the remaining spots for this quarter’s op 10 most attractive renewable energy destinations.
Most of the economies have set renewable energy targets as well as some efforts that will help achieve these targets. “It would appear that radical reform should be brought forward to provide further stimulus to the market now, rather than later. This would provide much needed investment opportunities for many economies and increase the likelihood that 2020 targets are met,” said columnist Jonathan Johns in the Ernst & Young report. – EcoSeed Staff