The United States leads the IHS Markit list, followed by Germany, China, France and Spain
Ranking of the most attractive countries to invest in renewables
On May 5, IHS Markit published the “Global Renewable Markets Attractiveness Rankings”, where it presents the most attractive markets for investment in non-hydroelectric renewables through an exhaustive analysis of the 35 markets that are expected to represent 90% of the new additions of non-hydro renewable capacity until 2030.
This ranking assesses each country in the individual categories of solar PV, onshore wind, and offshore wind based on seven subcategories: current policy framework, market fundamentals, ease of investment, infrastructure availability, revenue risks, return expectations, the ease of competing, and the overall size of each opportunity. After obtaining these individual classifications, a general classification of renewable energies is weighted.
The United States emerged as the leader of this ranking, presenting itself as the most attractive market after Joe Biden’s announcement of his goal to significantly increase federal investment in renewable energy along with solid market fundamentals.
Mainland China only ranked third – behind Germany – despite accounting for more than half of the world’s new renewable energy additions, as difficulties in accessing the market lowered its overall score.
Meanwhile, France and Spain ranked 4th and 5th respectively thanks to strong market fundamentals supported by stable procurement mechanisms and long-term clean energy goals, ahead of countries such as India and Australia.
The strong commitment to offshore wind boosted the rankings of Japan and the Netherlands, in 8th and 9th positions respectively. Latin America, for its part, was only represented with the 10th position of Brazil.
In the individual technology rankings, the United States also maintained the highest ranking for onshore wind and solar PV. The UK, which failed to make the top ten in the combined ranking due to its relative lack of support for onshore wind and solar PV development, was ranked as the most attractive market for offshore wind investment.