The new Republican administration’s focus on fossil fuel energy over renewable energy has resulted in the United States losing its number one ranking in an important worldwide index used by investors interested in renewable energy.
The “EY Renewable Energy Attractiveness Index” measures how attractive a country’s renewable energy market is to potential investors.
The report noted that a marked shift in US policy has resulted in the demise of the Clean Power Plan, which has made renewable investors more nervous about possible reductions to the Investment Tax Credit and Production Tax Credit. Concerns also include if gas prices will continue to remain low and if transmission capacity will remain stagnant.
China and India moved into the number one and two spots respectively and the United States was listed as third.
Movement on the index reflects a nation’s positive or negative policy regarding renewable energy investment and development.
China’s National Energy Administration announced in January 2017 that it will spend $363 billion dollars developing renewable power capacity by 2020. This investment will result in renewables accounting for half of all new generating capacity and create 13 million jobs in China, according to the Chinese government.
China also plans to launch a pilot tradable green certificate program in July 2017 for project operators to prove they have generated clean power and have sold it to consumers. The country has also committed to cutting greenhouse gas emissions by 18% per unit of economic growth by 2020 under the Paris Agreement.
India also continued to improve in the index. India’s government recently announced plans to build 175GW in renewable energy generation by 2022 and to have renewable energy account for 40% of installed capacity by 2040. The country has added more than 10GW of solar capacity in the last three years.
For the complete top 40 ranking and insight on battery storage, offshore wind and rooftop solar developments, visit ey.com/recai.