Renewable energy country attractiveness index - June 2015

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Established in 2003, our global quarterly publication ranks 40 countries on the attractiveness of their renewable energy investment and deployment opportunities, based on a number of macro, energy market and technology-specific indicators.


Infographic:

RECAI 44 at a glance...

Government proactivity has prompted positive index movements, while a more strategic mindset could accelerate energy storage investment and address energy security in the Mediterranean region.

Feature:

Empowering the Mediterranean

A group of industry experts explores how the Mediterranean region can use a strategic focus on energy to secure its own future and why investment in renewables is about so much more than just keeping the lights on.

Feature:

Storage: Just another energy asset?

With energy storage still often talked about in either vague or overly-technical terms, it’s difficult for investors to get a clear view of the opportunities. The focus therefore needs to be on making this “game changer” just another revenue-generating energy asset.

Index highlights:

Index optimism

The last few months have generally been encouraging for the global energy sector, with most movements in the rankings reflecting positive market developments.

China retains the top spot given the continuing speed and scale of its renewable energy deployment, likely to be boosted further by efforts to open up its market to private and foreign investors as it publishes its first detailed energy reform plan in over a decade.

India’s jump into fourth place ahead of Japan takes the spotlight in the top ten, having received more than 266GW of commitments to support the country’s clean energy transformation. The Government is also looking to increase the renewables obligations on large energy distributors and use currency hedging to make solar even more cost-competitive.

Capacity confidence

Meanwhile, the success of South Africa’s national procurement program has prompted a 6.3GW expansion, providing developers with greater certainty over future demand for capacity and helping the country move up to 13th place.

The release of an ambitious action plan targeting 61GW of renewables capacity by 2023 takes Turkey up to 17th place, while Mexico’s emission reduction commitment and investment in new wind capacity takes it to 20th place.

In Africa, the financial close of Morocco’s mega-scale CSP projects and Kenya’s rapidly increasingly project pipeline help these markets move up the index to 25th and 33rd place respectively.

Egypt is the real star, however, climbing two places to 37th after making its debut last issue and reflecting the phenomenal pace of growth as developers flock to build gigawatts of capacity in this increasingly attractive and stable market.

In Eastern Europe meanwhile, Poland and Romania are starting to show signs of recovery after experiencing almost two years of investment stalemate prompted by policy delays and U-turns.

Wait and see

Elsewhere in Europe, it’s likely to be an interesting year for Germany and the UK. While neither experience a shift in the rankings this issue, our focus articles highlight the mixed responses to Germany’s first competitive auction and a potential window of opportunity for the UK’s new government.

Meanwhile, Japan’s renewable ambitions appear to be wavering in light of a less-than-ambitious emissions reduction target, a potential return to nuclear and slow progress in liberalizing the energy market, contributing to its slip down to fourth place.