New Report Looks at Country-Specific Renewables Attractiveness; EU Looks Beyond 2020

A new report compiled by Ernst & Young measuring how attractive countries are for renewable energy investment has revealed that China remains a strong leader, while the U.S.'s overall attractiveness has declined. The Renewable energy country attractiveness indices report added that Germany has recovered its place as the second top country thanks to country's decision to increase its renewable energy 2020 target for electricity to 40 percent even though rising electricity costs have prompted government to rein in support for renewable as well, wrote Clean Energy Authority.

Despite the prominent place in the index, China has a dropped a point in the solar index, which is dominated by the U.S., whose overall attractiveness declined because of the uncertainty caused by the election and the lack of a long-term policy plan.

Oil-rich countries like Saudi Arabia and United Arab Emirates have also made it to the list due to new policies designed to cash into the rush for renewable energy.

The biggest casualties of the sector, the report says, are its manufacturers. It blames it on oversupply, falling technology costs, reduced demand in some European markets and ensuing trade protectionism, which have resulted in supply chain paralysis across some markets.

"Many manufacturers are likely to be left out in the cold as governments rationalize financial support and corporates favor divestment and restructuring," it says.

The report was released as Europe discusses its post-2020 energy policies. According to a Reuters report, EU energy ministers will be seeking "non-binding" guidance from the European Commission on reform of green fuel subsidies for after 2020. Countries like Germany say such policies can lead to high prices that decrease EU competitiveness since the US has cheap and abundant shale gas.

The European Renewable Energy Council would like the EU to get 45 percent of its energy from renewable sources by 2030.

Image credit: EY