According to Ernst & Young’s (EY) latest Renewable Energy Country Attractiveness Index (RECAI), emerging markets are becoming increasingly attractive to renewable energy investors looking for stable policy environments, The Financial reported.
EY Global Cleantech leader Gil Forer said that on one side there are countries that are in the process of reviewing, revising or rescheduling their energy policies, which is leading to uncertainty in the markets. On the other side countries are attracting investors by galvanizing large-scale deployment and removing barriers, as we’re seeing in emerging markets such as Brazil and South Africa.
With concerns increasing over the UK’s potential to meet its energy demand in the future, as ageing generators are shut down, investor confidence is seen as a key component of ensuring that sufficient capacity is created in the near future.
Mr Forer argued that governments need to work harder to create stable markets in order to secure energy investment.
Markets experiencing delayed investment include Australia, where the new government is drafting legislation to abolish the country’s carbon pricing mechanism in 2014.
In the UK, political point scoring on rising consumer energy bills only heightens uncertainty for investors.
With concerns increasing over the UK’s potential to meet its energy demand in the future, investor confidence is seen as a key component of ensuring that sufficient capacity is created in the near future.