Germany surpasses China, UK holds steady in renewable energy investment ranking
The UK has held steady in fourth place as the most attractive country for renewable energy investment in the latest Renewable Energy Country Attractiveness Index (RECAI), released by EY.
China slipped to third, Germany secured second, and the US continued to hold the top position.
Analysis in the 61st edition of the RECAI report found the US ranking is supported by the passing of the Inflation Reduction Act in August 2022, which earmarks a combined US$369b for investment in energy security and climate change.
Germany overtook China to claim the second position, driven by its efforts to accelerate power market reform and a target of 80% renewables in its power mix by 2030.
Meanwhile, India moved ahead of Australia, climbing one place to 6th position in the Index, having the fastest rate of renewable electricity growth of any major economy.
Ben Warren, EY renewables corporate finance, and RECAI chief editor, commented: “We are seeing signs of a mid-year recession – and given that such an environment typically facilitates spending and incentives for infrastructure projects, a generational opportunity has emerged for the renewables industry to turbo-charge green energy demand more than subsidies have in the past. For larger economies, it could even drive growth through scaling up capacity in the push for energy independence.”
