The UK has retained its position as the world’s eighth most attractive destination for investment in renewables, according to EY’s Renewable Energy Country Attractiveness Index (RECAI).
China and the US also remain in first and second place respectively in the bi-annual report, while France has moved up two places to third after doubling its targets for onshore wind installations.
EY said the UK was buoyed by the unveiling of the government’s offshore wind sector deal in March but weighed down by falling onshore wind installations following the closure of the renewables obligation to new applicants, as well as the lack of government support for the Swansea Bay tidal lagoon and reforms to networks charging being considered by Ofgem.
Ben Warren, RECAI chief editor and EY Global Power and Utilities corporate finance leader said: “While the offshore wind deal is extremely positive news for the UK renewables sector and will help to attract significant investment over the coming years, the announcement regrettably follows the withdrawal of support for onshore renewables in 2016 that has slowed UK sector growth.”
Source: RECAI, EY
The UK dropped one place from seventh in the previous ranking due to a slowdown in investment ahead of the country’s planned departure from the European Union.