The Country Attractiveness Indices track and rank 40 countries' renewable energy markets across a selection of technologies each quarter.
While 2011 saw record levels of new investment into clean energy, especially solar technologies, the outlook for 2012 is far less certain, particularly in developed markets according to this issue of Ernst & Young’s quarterly global renewable energy Country Attractiveness Indices report (CAI). The renewables sector will continue to prosper in 2012 in the emerging markets, thanks to ambitious installation programs securing investments, while more established markets will face increasing financial constraints, especially within the Eurozone.
The sovereign debt crisis continues to stifle renewable energy investment in the Eurozone, along with Governments scaling back their ambitions for the sector. Simultaneously capital scarcity and increased competition from Asia will continue to put pressure on developed markets for the foreseeable future. This will lead to almost inevitable consolidation of the wind and solar sectors and increased vertical integration, as equipment manufacturers seek ever more innovative routes to market.
There is no change at the top of this edition of the CAI. Yet, emerging markets are powering up the league table.
Take a closer look at our findings.
Although investment levels in 2011 broke records, it appears that the immediate outlook for many western markets will be influenced by affordability, accelerating the need for grid parity, and focused policy efforts and investment on energy efficiency.
The ability to sustain growth in the other parts of the world will also be fascinating to observe over the course of 2012.
