Almost without exception, European markets slipped down EY’s Renewable energy country attractiveness index (RECAI) rankings while less mature markets across Latin America, Africa and Asia continued their ascent, according to the latest edition of the report.
The emerging markets now represent half of the countries on RECAI list that ranks 40 markets on the attractiveness of their renewable energy investment and deployment opportunities, based on a number of macro, energy market and technology-specific indicators.
Chile (4), Brazil (6) and Mexico (7) climbed higher in the index top 10, while Germany (5) and France (8) fell in the latest ranking.
The US (1), China (2) and India (3) held their positions at the top of the index with the size and scale of renewables activity surpassing other countries.
Canada (9) and Australia (10) are also among the top ten countries when it comes to renewable energy investment attractiveness.
Ben Warren, EY’s Global Power & Utilities Corporate Finance Leader and RECAI Chief Editor, says: “Markets earlier in their renewables journey are benefiting from cheaper and more efficient technologies, lower cost of capital and more reliable resource forecasting. The increasingly global flow of capital proves that investors are becoming more comfortable with new markets. We can expect to see massive deployment of low carbon investment in developing markets.
“Yet, ambitious targets and low pricing alone will not be enough to promise investment attractiveness. The ability of markets to climb, or stay in will depend on projects being built, and commercial viability enabling the supply of affordable energy in a competitive environment.”
EY is a global organization that offers assurance, tax, transaction and advisory services.