Renewable energy sources (RES) are growing dynamically as market conditions, policy decisions, investment and advances in technology push clean energy to new heights. However, the congestion of energy transmission networks will need attention, as it may be a challenge for the further development of RES. This emerges from the 58th edition of the EV's semi-annual report, Renewable Energy Country Attractiveness Index (RECAI), which emphasizes that the effort to integrate an ever-increasing number of resources will put pressure on transmission network infrastructure, with the necessary investments to upgrade and the expansion of global energy infrastructure are a major challenge.
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The report, which includes a ranking of the world's top 40 markets based on the attractiveness of RES investment and growth opportunities, also examines how Eastern European markets are stepping up their carbon footprint. In relation to the economies of Western Europe, Eastern Europe lags behind in the development of green energy infrastructure. Meanwhile, all European countries are facing their own economic, social and political challenges in their quest to meet the EU target. to achieve a neutral carbon balance by 2050.
The US, China and India maintain the top three positions in the RECAI index
The United States maintains a leading position in the EY rankings, which it is expected to maintain, as new initiatives are announced under President Biden. Mainland China and India remain in second and third place, respectively, as the favorable regulatory and investment environment is maintained.
The best performing markets retain their position, as there are no changes in the composition of the first eight positions of the index. France climbs one place to fourth, with the United Kingdom falling to fifth, while Germany, seventh in the rankings, overtakes Australia to sixth, with Japan firmly in eighth.
The report also addresses favorable policies and recent tenders in Greece, Spain, Taiwan and the United Kingdom. Following the reforms in the licensing process, Greece is now in 24th place in the ranking, from 26th place in the previous six months, its best performance to date.
The report also explores the link between the growing hydrogen sector and the renewable energy sector in markets such as Germany, Kazakhstan, the Netherlands, the United Kingdom and the United States, detailing how different funding models are being developed. investment and risk reduction. Offshore wind farms in Japan, the Netherlands, Spain and the United Kingdom are also emerging, with France and Belgium (26th to 30th) improving their position in the ranking by announcing plans that will make significant use of their offshore wind potential.
New Index of Energy Purchase Agreements ( PPA )
As environmental, societal and corporate governance (ESG) issues rise to the top of the business and investor agenda, the report also highlights that power purchase agreements (PPAs) are emerging as a key driver of clean energy growth. A new PPA Index, added to this version of the report, focuses on the attractiveness of renewable energy supplies by presenting a new ranking based on the growth potential of the country's energy market agreements.
Commenting on the research findings, Stelios Dimitriou, Partner and Head of Strategy and Trade of CR Cyprus, said: “Our latest survey confirms that the increase in investment and the adoption of supportive policies by governments allowed the sector of Renewable Energy Sources to continue to grow rapidly, in a critical time frame in relation to the fight against climate change. However, in parallel with the investments in RES, it will be necessary to substantially increase the expenses in the energy transmission networks during the next decade, in order to achieve the ambitious sustainability goals that we have set “.