India Ranked 3rd in ‘Renewable Energy Country Attractiveness Index’ By EY

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In Renewable Energy Country Attractiveness Index (RECAI) India has ranked third with China at second and the US on top.

Consultancy firm Ernst & Young has rated India’s renewable energy sector 3rd in the Renewable Energy Country Attractiveness Index (RECAI) with China ranking second and the US holding the top position. 

EY said in the report that,The emerging markets now represent half the countries in the 40-strong index, including 4 African markets featuring in the top 30. Decades ago  China and India were only attractive enough to compete with more developed markets for investment .

While the top three countries uphold their ranking, Chile, Mexico and Brazil scaled higher,holding the index ranking of fourth, sixth and seventh, respectively. Germany and France dropped in the latest ranking to fifth and eight severally.Argentina was the highest-scoring new entrant. 

“The report demonstrates that low solar bids are not restricted to India, but countries like Mexico and Dubai have also been reporting very low solar bids. In India Wind continues to be at a pricing premium to solar in the rest of the world but both these technologies are racing towards grid parity which may lead to not-so-desirable consequences for traditional utility business models.”,said Kuljit Singh, partner (infrastructure practice) at EY.

India’s ranking is due to the strong focus of the government on renewable energy as well as appropriate execution of renewable energy projects.

EY said in a press release that, “The falling cost of renewables and their growing ability to challenge and displace fossil fuel generation without subsidy, long-term power purchase agreements (PPAs) from creditworthy counter parties, are an option in any market”.

The report  points out that Chile is one of the first markets to allow economically viable renewables projects to contend directly with all other energy sources. Simultaneous Brazil’s renewable sector is showing astonishing resilience amid an economic downturn and its undeveloped solar market remains a potentially lucrative lure. Under new liberalized energy market Mexico’s current power auctions have opened the door to multi-billion dollar opportunities.With a legacy of centralized conventional power generation European markets address the challenges of mingling increasingly mainstream renewables and emerged to be escalating back their ambitions.Argentina under its new pro-market government brought it at 18th position on index.

The index ranks 40 markets based on a number of macro, energy market and technology-specific indicators as well as on the attractiveness of their renewable energy investment and deployment opportunities. In the May edition the methodology has been refreshed  to reflect greater focus on energy imperative,routes to market and policy stability.

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