China is now one of the top two most attractive locations in the world in which to invest in renewable energy projects, according to Ernst & Young's latest global renewable energy country attractiveness indices.
China, which is ranked just behind the U.S., has moved ahead of Germany for the first time in the report's six-year history. Ranked fourth in 2008 and sixth in 2007, China has been steadily improving its position as one of the powerhouses of the renewable industry as it increases its commitments to reduce emissions through its carbon intensity reduction plans, says Ernst & Young.
The Ernst & Young Indices rank countries according to their desirability as locations for investing in renewable energy technologies. The indices, which set scores out of 100, provide rankings for national renewable energy markets, renewable energy infrastructures and their suitability for individual technologies.
The indices also see rises for both Brazil and Japan. The Japanese government's new targets to reduce greenhouse gas emissions by 25% (based on 1990 levels) by 2020 are a significant increase on previous targets of 8%.
The U.K. has risen one point (ranked sixth) following further announcements relating to improvements with the grid connection process and a further 1.15 billion pounds of investment in the grid. But the scale of some overseas markets and, in particular, the speed of growth that is being achieved by the renewables industries in the tiger economies, has affected the U.K.'s ability to attract significant investment from the global market, the report notes.
In the U.S., the ambitious climate change bill has not yet been passed, but as the worst of the credit crunch starts to ease, the forecast for developments remains optimistic. In Eastern Europe, investment has become increasingly attractive over the last year as investors seek to exploit new, high-growth potential markets.
Manufacture of solar modules in Europe has come under increasing price pressure from Chinese products as the cost of raw materials has fallen, with further consolidation looking likely in the sector, Ernst & Young adds.
SOURCE: Ernst & Young