Spain remains the most attractive market for renewables
LONDON, England, October 26, 2005 (Refocus
Weekly)
Spain continues to be the most attractive country
in the world for renewable energies, remaining one point ahead of
the United States.
Spain stays in top spot due to its new five-year energy plan that
provides a “firm foundation to its strong indigenous industry,”
concludes the latest ‘Renewable Energy Country Attractiveness
Indices’ produced by Ernst & Young. The country’s overall index for
renewable energy was 68, with a 69 in wind and 69 in solar, but a
score of 61 in biomass and a 73 in infrastructure.
The U.S. market “continues to motor following the extension of the
PTC” (Production Tax Credit), scoring 67 overall, with a 67 in wind,
74 in solar, 60 in biomass and 63 in infrastructure. The “booming”
U.S. market is causing a global shortage of turbines, “leading to
delays for some European projects and ultimately discouraging
investment in more risky turnkey projects for offshore windfarms.”
Third-place Britain scored 63 overall, with 65 in wind, 46 in solar,
58 in biomass and 71 in infrastructure. Its former first-place
standing in the wind index dropped to third despite high short-term
energy prices, “largely due to the lack of increase of the ROC
obligation target beyond 2015, which together with costs (and
availability issues) for turbines, is likely to lead to delays in
the offshore programme.”
The offshore wind sector in Britain is at a ‘make or break’ point,
and faces increasing competition from the other countries which are
grabbing at market share. Soaring oil prices and a shortage of RO
Certificates (needed by electricity companies to meet their
renewables obligations) have caused green power auction prices to
rise in excess of £90 per MWh.
“As countries such as India start climbing up the Indices, it is the
emerging markets that will become the new hotspots for renewable
investment, which could lead to a major shift in the industries
dynamics,” explains Jonathan Johns of Ernst & Young. “And with the
US also flexing its muscle, the world is becoming an increasingly
competitive place. Capital and investment - of which there is no
shortage - is starting to move to the most attractive regimes with
increasing speed.”
Fourth ranking on the indices goes to Germany with an overall score
of 60, with 60 for wind, 69 for solar, 52 for biomass and 54 for
infrastructure. India scored 57 overall, and 59, 54, 44 and 51 on
the sub-rankings.
There was a three-way tie for sixth place, with France, Portugal and
Ireland all scoring 56 in the overall ranking for renewables. The
sub-rankings for France were 57, 56,52-52; Portugal 56, 55, 49, 64;
and Ireland 58, 38, 46, 63. The Netherlands and Italy tied with 55
overall, to fill out the top ten rankings.
In Italy, short-term prices of Euro 150 per MWh are being earned for
green power, but “there is little certainty over green certificate
values going forwards, even in the medium term,” the report notes.
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