Spain, ranked 11th among the most attractive countries for investment in renewables

Spain is ranked number 11 in the ranking of the most attractive countries in the world for investment in renewable energies. This is stated in the latest Renewable Energy Country Attractiveness Index (RECAI) report, prepared by EY. The 55th edition of this publication analyzes the impact of the pandemic and the resilience of countries, both in health and economic terms. Our country has risen four places compared to the previous edition.

According to the RECAI index, which includes 40 countries, Spain stands out as one of the most attractive countries and with the highest growth projection in terms of renewable energies. Despite having suffered strongly from the crisis derived from COVID-19, the report highlights that climate and energy policy is one of the priorities of the Government, establishing plans to increase wind and solar energy.

The document indicates that due to these measures most investors are optimistic about the sector’s projects in the medium term.

USA, China and France, in the top three positions

The United States tops EY’s RECAI report, for the first time since 2016. This is due to the short-term expansion of the Production Tax Credit and, in the long term, the growth of offshore wind, with an expected investment of 57,000 million dollars, which will allow to install up to 30 GW in 2030.

As for China, it has moved to the second position of the index. Investment in renewable energy has slowed, as the government expects the market to stop receiving subsidies and move towards a more competitive landscape, in addition to lower demand caused by the COVID-19 crisis. However, the forecasts are optimistic in the long term due to the growth of the market.

For its part, France has gone from fourth to third position in the ranking. Among other things, the neighboring country has consolidated prices through its latest auction of 1.4 GW for wind and solar operators, as it gradually reduces its nuclear power grid.

After France, in order of position in the ranking, Australia is in fourth place, followed by Germany, the United Kingdom, India, Denmark, the Netherlands and Japan, the latter in tenth position.

Large-scale energy storage

On the other hand, EY’s RECAI index looks especially at large-scale energy storage systems, critical to decarbonising electrical systems, as well as the conditions needed to drive investment in batteries at scale and storage equipment in utilities.

According to the report, 12.6 GWh of battery storage is expected to be installed this year, making 2020 a record year in terms of energy storage growth. And in the longer term, capacity is forecast to increase by 13 times, from about 17 GWh today to 230 GWh by 2025.

Among other things, the EY report highlights the National Energy and Climate Plan 2021-2030 presented by the Government of Spain to the European Commission, which sets the target of a 23% cut in emissions by 2030, compared to 1990 levels. Despite the economic impact of COVID-19 and suffering, like other countries, setbacks in the supply chain and delays in the construction of some projects, according to the report, no major repercussions are expected in the sector.

Source: Smart Grids Info