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AfrElec RENEWABLES AfrElec
US bounds back to top of EY green index
GLOBAL
THE US has become the “most attractive coun- tryforrenewableenergyinvestment,”becauseof a recent extension to federal incentives for green projects and the offshore wind sector’s long-term growth prospects.
The US regained the top place in the EY Renewable Energy Country Attractiveness Index (RECAI) for the first time since 2016.
EY highlighted the government’s short-term extension to the Production Tax Credit incentive and the current offshore wind project pipeline, which current stands at 30 GW by 2030, at a cost of $57bn.
The US overtook China, as Beijing attempts to reduce its subsidy regime and introduce more competition, even though long-term expansion is strong.
The RECAI also found that the renewables sector as a whole was expected to bounce back from the current coronavirus (COVID-19) inspired economic downturn, as green invest- ment levels remained strong.
Ben Warren, EY global power & utilities corporate finance leader, said: “As a result of the pandemic, pollution levels have fallen dra- matically through reduced fossil fuel consump- tion. A greater focus on a sustainable long-term energy future therefore works in favour of clean energy, in particular wind and solar, together with storage.”
The UK was another notable contender, ranking sixth after the government re-included onshore wind and solar projects in the next Con- tracts for Difference (CfD) auction.
France now boasts strong wind and solar prices, the report said, while awarding 1.4 GW of wind and solar capacity.
Spain rose four places in the rankings,
boosted by the government’s commitment to promotingclimateandenergypolicies.
The government has just published its draft law to reduce the country’s CO2 emissions to net zero by 2050.
This involves making the generating system 100% renewable, banning all new coal, oil and gas extraction projects with immediate effect, ending direct fossil fuel subsidies and making all new vehicles emissions-free by 2040.
India is a major loser, sliding four places to seventh, as it is not unlikely to meet its green tar- get of 175 GW by 2022.
Egypt also fared poorly, falling 17 places to 29th, as it suffered from low industrial power price forecasts and a 0.6-GW cut to its solar capacity forecast.
One notable new entry was Saudi Arabia, which came in at 32nd place, as the country plans to have 25 GW of green capacity by 2025, and 60 GW by 2030.
“While new renewable installations may well be down as much as 10% in 2020 compared to 2019 levels, there is an expectation that the industry will be more resilient than others, with some predicting a bounce-back in 2021,” Warren said.
Benoit Laclau, EY Global Energy Leader, said: “Despite the current crisis, this is a defining and transformative opportunity for the energy industry.
“Energy leaders must realise this is a win-win situation with the potential for disrupting the status quo, and take action towards investments in renewables and related sustainable long-term infrastructure, such as energy efficiency, smart power networks and low-carbon transport infrastructure.”
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w w w . N E W S B A S E . c o m Week 20 21•May•2020
