- US retains the top position with China and India taking up the second and third positions respectively.
- The conditions are ripe for rapid growth in renewables generation, inadequate grid investments may be a major challenge
- Immediate upgrade of energy transmission grids now critical across the globe
- New power purchase agreements (PPA) index ranks markets’ corporate PPA growth potential
- ESG measures soaring to the top of the agenda for companies and investors
New Delhi, 13 October 2021: India retains 3rd position in the 58th edition of EY’s ‘Renewable Energy Country Attractiveness Index’ (RECAI) which ranks the world’s top 40 markets (nations) on the attractiveness of their renewable energy investment and deployment opportunities. With environment, social and governance (ESG) measures soaring to the top of the agenda for companies and investors, RECAI also highlights that corporate power purchase agreements (PPAs) are emerging as a key driver of clean energy growth. A new PPA Index – introduced in this edition of RECAI – focuses on the attractiveness of renewable power procurement and ranks the growth potential of a nation’s corporate PPA market. India is ranked 6th among the top 30 PPA markets.
India’s thriving renewable energy market conditions, inclusive policy decisions, investment and technology improvements focusing on self-reliant supply chains has pushed clean energy transition to new heights. However, the sector must be careful to navigate bottlenecks that could threaten continued rapid growth. The EY report reveals that the drive to integrate increasing volumes of variable resources is set to put grid infrastructure under significant strain, and the investment required to upgrade and expand energy transmission infrastructure across the globe will be a key challenge.
Somesh Kumar, Partner and National Leader, Power & Utilities, EY India, said, “In August 2021, India witnessed a watershed moment in combatting the climate crisis. The total installed renewable energy capacity (excluding large hydro) crossed the milestone of 100 GW. This edition of RECAI also examines how the sector could manage grid integration challenges from the rising share of renewable energy by upgrading and expanding transmission infrastructure. India’s ‘One Sun, One World, One Grid’ (OSOWOG) initiative aims to create an intercontinental grid that can maximize economic benefits through grid interconnections by leveraging the differences of time zones, seasons, resources, and prices between countries and regions. This approach to interconnect renewable energy systems on a massive scale will shape the global effort to absorb variable renewable energy with minimal curtailment.”
US, mainland China and India continue to retain the top three rankings and Indonesia is a new entrant to RECAI
The US continues its top ranking on RECAI and is expected to hold its position as new initiatives are being announced under President Biden. Mainland China and India remain unchanged in the rankings at second and third position respectively, as favorable regulatory and investment conditions continue in these markets.
The top performing markets have held their ground in this latest issue – with no movement into or out of the top eight. France (fourth position, up by one) and the UK (fifth position, down by one) have switched while Germany (sixth position, up by one) has edged back ahead of Australia (seventh position, down by one) after its onshore wind market had a fruitful first half of 2021, with 971MW added, marking a 62% rise from the first half of 2020.
Also, under the spotlight are policy support and notable government auction rounds for Greece, Spain, Taiwan and the UK. The Philippines (27th position, up by four) has moved up the ranking with an indicated target of achieving 35% renewable energy by 2030, while also setting out its offshore wind road map.
For the complete Top 40 ranking, the new PPA Index and analysis of the latest renewable energy developments across the globe, visit ey.com/recai.
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About the EY Renewable Energy Country Attractiveness Index
The EY Renewable Energy Country Attractiveness Index (RECAI) ranks the top 40 markets in the world on the attractiveness of their renewable energy investment and deployment opportunities. The rankings reflect EY assessments of market attractiveness and global market trends. This edition reflects on the glimpse of what the energy industry might look like in the future based on COVID-19 lockdown measures, when large reductions in energy demand resulted in the share of renewables soaring across most regions.