According to a new ranking by IHS Markit, the United States is the most appealing market for renewable energy investment.
The Attractiveness of Investment in Offshore Wind, Onshore Wind, and PV is tracked by the Global Renewables Markets Attractiveness Rankings. It ranked the United States first for 2020, citing the country’s strong business fundamentals and the availability of a generous support program.
Each country was ranked based on its current policy environment, market fundamentals, investor friendliness, infrastructure readiness, revenue risks, expected returns, and overall opportunity.
Solar PV, onshore wind, offshore wind, and an overall renewables score were all provided to each sector separately.
Continent China, which added more than half of the world’s total non-hydro renewables capacity last year, came in third on the attractiveness scale, hampered by market access issues. Based on solid market fundamentals backed by stable procurement processes and long-term renewable energy targets, Germany came in second, while France and Spain came in fourth and fifth, respectively. Japan moved up to the eighth position, while the Netherlands moved up to the ninth.
The generation source is projected to be the fastest-growing renewable energy technology in the next decade, according to IHS. Countries with a strong impetus for offshore wind received a major boost.
The availability of attractive subsidies and a high degree of investor friendliness in India, as well as the availability of strong ambitions and stable procurement initiatives in Australia, pushed these markets to the sixth and seventh spots on the list.
In individual technology rankings for investment attractiveness for solar PV and onshore wind, the United States held the top spot. Due to its lack of support for onshore wind and PV growth, the United Kingdom did not make the top ten in the combined rankings. Individually, it ranked as the most appealing market for offshore wind investment.