Since 2003, professional services firm EY has ranked the world’s top 40 markets on the attractiveness of their renewable energy investment and deployment opportunities. The consultancy rounds up the key findings of the latest edition of the report.
Renewable energy investment
Having led EY’s renewable energy ranking for years, the United States once again retains its top position – for a large part due to the Inflation Reduction Act passed in August 2022, which is viewed as a game changer for the country’s green hydrogen industry.
At number two, China remains committed to accelerating its renewable energy transition as it seeks to bring emissions to a peak by 2030 and achieve net-zero emissions by 2060.
Meanwhile, in Europe, Germany climbs one place to third position as the renewables sector is expected to triple its expansion in the coming decade, lifted by the government’s latest Easter package commitment. The United Kingdom has moved down one spot to fourth.
The top 10 further comprises three European countries (France, Spain and the Netherlands), as well as India, Australia and Japan. Notable growers in the latest edition include Greece and Indonesia.
Growing financial attractiveness
Overall, EY’s report shows that governments and the private sector around the world are accelerating their renewables programs to help reduce their reliance on imported energy, in the face of continuing geopolitical tensions and economic uncertainty.
The growing financial attractiveness of decentralised energy systems and smart grids is another driver of renewable energy systems. “The cost of technologies is falling, and regulatory support is increasing, notably the tax benefits of the US Inflation Reduction Act and the European Commission’s REPowerEU plan,” said Ben Warren, a partner at EY and chief editor of the report.
Against all the investments pouring into renewables, EY’s report warns that there are still significant challenges to overcome. From weather-proofing energy infrastructure to protect it against extreme hot and cold weather, to developing more effective energy storage systems to meet the intermittent nature of renewables, or to ensuring there is enough capacity to accommodate the accelerating rollout of electric vehicles.
“In addition, cybersecurity will be an issue, given the interconnectedness of decentralised energy ecosystems, with the increased potential attack surface area making such systems more vulnerable to cyber-attacks,” said Warren.
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