UK slips to fourth in clean energy investment market index

The UK has slipped to fourth position in Ernst and Young’s (EY)  biannual global ranking of the best places to invest in renewable energy, with Germany taking its place. The US and China retain their top rankings of first and second, respectively. 

First published in 2003, EY’s 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. 

Germany moved ahead of the UK after the government approved a historic renewable energy package that has set targets to raise the share of renewables in the power mix to 80% by 2030 and nearly 100% by 2035. Last year, renewables comprised 42%.  

Onshore wind and solar capacity are expected to soar, supported by Germany classifying renewable energies as ‘an overriding matter of public interest and public security’ in its Constitution. 

Positive developments in the UK occurred in the area of offshore wind. Although it lost its top ranking in this category for installed capacity to China, the UK can point to the largest pipeline. 

Offshore wind features prominently in the government’s Made in Britain energy strategy, which set an ambitious target of 50GW by 2030. This is a significant increase from its current capacity of 12GW.  New planning reforms are expected to slash approval times from four years to one, helping to speed deployment.  

Investment flows have also been strong, with the UK Infrastructure Bank announcing a £22billion investment plan in June. Renewable energy will be its largest investment sector, with low carbon hydrogen, energy storage and grid networks. In July the UK government also unveiled two hydrogen investment strategies – the Hydrogen Business Model and the Net Zero Hydrogen Fund – that will offer subsidy options and grant funding. 

Read the latest Renewable Energy Country Attractiveness Index (RECAI) here.