• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 5 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 10 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 14 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 14 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days An Indian Opinion on What is Going on in China
  • 2 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 19 hours Nord Stream - US/German consultations
  • 2 days Can Technology Keep Coal Plants Alive and Well?
  • 3 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 3 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 5 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 2 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 2 days Storage of gas cylinders
Charlotte Dudley

Charlotte Dudley

Charlotte is a writer for Environmental Finance.Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance, investment…

More Info

Premium Content

Despite Challenges China Remains the Number One Market for Renewables Investment

China is still the most attractive market for renewables investment, despite facing significant supply chain challenges, while continued economic pressure has put the wider global renewables market “in a state of flux”, according to analysis by Ernst & Young.

China again topped the All Renewables index in the consultancy’s quarterly Renewable energy country attractiveness indices, ahead of the US. However, for the first time in recent quarters, the Asian nation failed to increase its score in the rankings, amid concerns its “meteoric” wind and solar growth path is unsustainable.

While China’s wind sector showed strong growth in 2010 and its solar industry is expected to benefit from additonal government subsidies, the consultancy highlighted concerns about supply chain challenges such as bottlenecks from weak R&D capacity, limited grid capacity and an imbalance in equipment production capacity.

Caution in Chinese stockmarket listings, falling stock prices and inflationary pressures were also factors in the country’s static index scorecard, the report said.

Meanwhile, the legacy of the global financial crisis continues to put pressure on the global renewable industry.

“Some countries and technologies are finding the economic conditions deeply challenging,  leaving the market in an overall state of flux,” Ernst & Young said, noting a growing concern, particularly among developed countries, with getting value for money from renewables.

“The pressures to reduce national debt in developed countries, and control fiscal burdens on industry, consumers and taxpayers, are leading to a very keen focus on better value for money,” the report says. “This is supplemented by a renewed interest in carbon taxes and other fundraising devices – notwithstanding the desire to combat climate change and drastically lower carbon emissions.”

The renewables sector must engage in the wider low-carbon energy debate to ensure “it benefits from the incentives it needs and gives value for money to the various stakeholders”, the report adds.

US steady but uncertain, policies boost Turkey, Brazil

The US remains in second place on the All Renewables rankings and managed to climb one point in the index following the US government's extension of the 1603 Treasury grant programme for renewable energy until the end of 2011.

“The news is a sign that the US administration is prepared to take necessary steps to boost renewable energy development, even if it does come at the 11th hour. However, there is still some longer-term uncertainty,” the report says.

While US wind installation collapsed in 2010 to 5.1GW from 9.9GW in 2009, the report notes encouraging signs such as President Barack Obama’s target of 80% clean electricity by 2035, as outlined in his recent State of the Union address.

Germany and India maintained joint third position, while the UK remained in fifth alongside Italy, which rose from sixth position. Italy’s rise reflects its fourth quarter surge in solar photovoltaic installations – despite allegations of inflated installation figures – and the €600 million ($833 million) the European Investment Bank package awarded to Enel Green Power to fund renewables projects.

The Netherlands and Australia slipped two spots to 18 and 14 respectively, reflecting reductions in subsidies for Dutch renewables and Australia’s roll-back of solar support for householders and policy proposals that could restrict wind farm growth.

Turkey moved up one position to 27, buoyed by the approval of favourable renewable tariffs, while Brazil jumped from 18 to 16, boosted by a series of government commitments to ban additional fossil fuel power plants from 2014 and increase renewables incentives and grid capacity.

By. Charlotte Dudley

Source: Environmental Finance


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News