In 2020, global investment to boost renewable energy production increased by 2% to $ 303.5 billion – the second largest amount to date, despite the impact of the COVID-19 pandemic. However, the 57th edition of the EY Renewable Energy Country Attractiveness Index (RECAI) estimates that future growth that could lead to a net zero energy consumption requires additional investments of the order of $ 5.2 trillion, highlighting the crucial role that institutional investors are called upon to play in financing this energy transition.
The index’s findings underscore that environmental, societal and governance (ESG) issues are increasingly emerging as a priority on investors’ agendas, while institutional investor interest in RES continues to grow.
The forthcoming United Nations Conference on Climate Change (COP26), for 2021, is a window of opportunity to bridge the gap between government announcements and actions that have actually been taken so far worldwide. The latest version of the RECAI Index estimates that policies, whether implemented today or announced by the most powerful states, demonstrate a stronger commitment to greater accountability and transparency, with state representatives expected to lay out clear roadmaps and share details. with measures to increase investment in renewables.
The EY Index also examines case studies of green hydrogen use in Europe and China, which reflect the great potential of this new technology, but also demonstrate barriers to its commercialization. and its widespread use.
Greece occupies its historically highest position in the index
The competitive procedures (auctions) for RES announced by the Energy Regulatory Authority, with the aim of awarding a total renewable energy capacity of 2.1GW by 2025, as well as the introduction of a new digitized licensing procedure for participation in national competitive RP procedures helped Greece climb from 31st place in the ranking, to the historically high 26th, thus surpassing the 28th place in which it was in November 2018.
Commenting on the findings of the research, Mr. Tassos Iosifidis, Partner and Head of the Department of Corporate Strategy and Transactions Advisers of EV Greece, states: undertaken by the country in terms of de-lignification and the promotion of RES. The challenge now lies in implementing the design and modernization of the legislative and regulatory framework, in order to maintain this positive momentum and to make the necessary investments in wind and solar energy, energy storage, smart grids and low-emission transport infrastructure. coal, especially in the context of utilizing the resources brought by the Recovery and Sustainability Fund “.
The US retains the top spot, with China and India topping the top three
The US has maintained its leading position in the RECAI index and is expected to remain in it, under the leadership of President Biden. Re-accession to the Paris Agreement, combined with recent announcements of a 50% -52% reduction in greenhouse gas emissions by 2030, and the production of 100% pure carbon by 2035, are expected to lead to increased investment interest in USA. Similarly, the Chinese market remained vibrant and maintained second place in the ranking, adding 74.2GW of new wind energy by 2020, as producers rushed to anticipate cuts in previously announced onshore wind energy subsidies. In addition, in April, China and the United States announced that they would work together, both with each other and with other countries, to reverse the effects of climate change.
India gained a position, rising to 3rd, with the solar energy sector expected to grow significantly and the production of energy from photovoltaic systems to exceed that of carbon, before 2040. Japan and South Korea (in 8th and 17th place) of the ranking, respectively), were also committed to net zero energy consumption. The EY report highlights that the East Asian region has more than 800 projects ready for implementation, with investments estimated at more than $ 316 billion.
Other markets “climbed” in the ranking, as well as plenty governments are introducing new offshore wind projects, such as Poland, which ranked 22nd, Brazil, which climbed to 11th, and Italy, which climbed two places to 15th, following the announcement of € 209 billion in grants from the Recovery and Durability Fund. Germany, on the other hand, dropped from 6th to 7th place in the ranking, as a result of the extraordinary changes announced in the process of submitting future tenders for terrestrial wind energy production.
For a full ranking of the index and an analysis of the latest developments in the field of renewable energy sources, visit https://www.ey.com/en_gr/recai.
