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Attractiveness of renewable
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While renewable energy is at risk of being sidelined in some countries, it's thriving in others. Ben Warren explains how to use the country attractiveness indices to read the latest trends and support decision-making.

2011 witnessed another record year for new investment in clean energy, with solar technologies doing best, though this varied greatly by geography.

Country attractiveness indices and how to use them

So where are the most attractive countries for renewables? Since 2003, our Environmental Finance team has released quarterly data ranking national renewable energy markets and their suitability for individual technologies. The country attractiveness indices now track the attractiveness of 40 countries' renewable energy markets across technologies each quarter.

The indices are an essential guide to what's happening in the renewables sector globally. Figure: All renewables index at February 2012 provides our latest index with the current scores of 40 countries for all renewable energy technologies and by technology. The number in brackets is the five year forecast.

What are the numbers based on?

The indices rankings are based on our analysis in two areas:

  • Infrastructure (35%): level of regulatory risk in the electricity market and deregulation; favorable planning environments and how easy it is to get a grid connection cost-effectively; cheap access to finance and good lending terms
  • Technology (65%): there are six technology indices for each country - onshore wind, offshore wind, solar photovoltaic, solar, geothermal and biomass and other resources (small hydro, landfill gas and wave and tidal technologies; energy from waste is not included).
All renewables index at February 2012

Renewable energy country attractiveness indices table

All renewables index at February 2012

all_renewables_index_feb_12

We perform resource-specific assessments for each index based on power off-take attractiveness, tax climate, grant or soft loan availability, market growth potential, current installed base, resource quality and project size.

The indices do not show future trends, or act as a predictor of the fastest growing markets. Similarly, they can't show you how to enter the market. For advice on key issues like tax planning, where to domicile and local partnerships, please contact us.

For more information

Visit our global renewable energy pages www.ey.com/renewables

Renewables energy country attractiveness indices

Find out more about the Indices and read the latest and past issues.


Renewable energy country attractiveness indicesRenewables energy country attractiveness indices

February 2012

Read our latest report, which includes articles on the implications of the COP17 agreement in Durban, how liquidity constraints could affect project finance, and a focus on developments in the Middle East and North Africa.



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Ben Warren

Ben Warren

Head of Environmental Finance
+44 (0) 20 795 16024
bwarren@uk.ey.com

Ben Warren Ben Warren
Ben is head of Environmental Finance, with global responsibility for Transaction Advisory Services provided to the environmental sector. He has 15 years' experience advising clients on funding solutions and corporate finance, across EMEIA, the US and Asia, and is author of the Renewable energy country attractiveness indices.
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