A recent ranking by consultancy Ernst & Young puts China ahead of the U.S. as the most attractive country to invest and develop renewable energy projects.
This is the first time China overtakes its U.S. rival and this comes at a time of growing uncertainty over the fate of key stimulus-funded programs, scheduled to end at the end of the year. The U.S. Senate’s failure to pass a comprehensive climate change bill, earlier this year, is also adding to the uncertainty and benefiting China.
“What we’re seeing in the U.S. is a continued resistance to committing to long-term visible and transparent support for the sector,” Ben Warren, Ernst & Young’s environment and energy infrastructure advisory leader, tells Bloomberg. Warren adds: “The U.S. market has always suffered from this boom and bust tax-based incentive regime.”
Is China’s lead likely to last? Yes . “We would expect to see China retaining a dominant position,” he explains.
Fueling that growth is the long-term certainty only a centrally planned like China’s economy can do! Also, unlike their western counterparts, Chinese banks are actively lending. According to Bloomberg, the China Development Bank Corp. has agreed to lend up to 116 billion yuan ($17 billion) to Yingli Green Energy, Suntech Power and Trina Solar.
China plans to generate 15 percent of its electricity from renewable sources by 2020.
After China and the U.S. the most attractive renewable energy markets are Germany, India, Italy, the U.K., France, Spain, Canada and Portugal.
Source: Green Energy Reporter