China Surges Ahead in Global Renewable Race

LONDON, Nov. 30, 2010 /PRNewswire/ -- With China now the clear global renewables leader and new countries emerging as key contenders in the market, a new world order is apparent in the clean energy sector, according to Ernst & Young's latest Renewable Energy Country Attractiveness Indices of 30 countries.

China's record spending on its wind industry this quarter represented nearly half of all funds invested in new wind projects around the world.  Figures released for the second quarter of 2010 showed that China invested around $10bn in wind out of a global total of $20.5bn.  Such heavy investment has ensured that approximately one in every two wind turbines to go live in 2010 will have been in China.

The United States, which topped the indices between November 2006 and May 2010, is now five points behind the ascendant China. The continued repercussions of the financial crisis, low gas prices and the uncertain medium-to-long term policy environment have prompted a one point fall this quarter in the US, while China rose two points.

Ben Warren, Ernst & Young's UK Energy and Environmental Infrastructure Advisory Leader, explains, "Since reaching top spot in our Index in September, China has opened up a healthy gap from other markets. Cleantech, including renewable energy, represents a significant part of the country's future economic growth plans."

Warren continues: "The level of wind energy being deployed in China shows what can be achieved with a carefully planned energy and industrial policy that elevates cleantech to a national strategic level.  The Chinese solar industry is also fast becoming of great importance in the global market place."

New entrants

This issue of the indices includes four new entrants: South Korea, Romania, Egypt, and Mexico.  South Korea leads the new entrants to secure 18th position, on the back of its ambitious targets, strong incentives, and robust supply chain. Romania and Egypt both achieve a ranking of 22nd, as a result of their fast-growing wind markets.  Mexico completes the new line up, ranking 25th, benefiting from challenging targets and strong wind and solar resources.  

Gil Forer, Ernst & Young's Global Cleantech Leader, comments: "South Korea, one of the largest energy consumers in the world, elevated the country's focus on cleantech to a national strategic level through its five year comprehensive National Strategy for Green Growth plan that was announced last year.  The implementation of this plan will enable the country to drive a low carbon and more resource-efficient economy, as well as enhancing its innovation-based platform."

Country comparisons

Japan climbed three points in the index, driven by the potential for its solar cell market to grow nearly fourfold from its 2009 level to JPY487.1b (euro 4.3b) by 2020, given the Government's climate policies such as the household solar installation subsidy FITs introduced in 2009.

The UK has climbed a point following its Government's public spending review and the publication of a National Infrastructure Plan — both of which signalled strong support for renewables and specific investment in offshore wind.

Elsewhere, India gained a point following the completion of regulations for the trading of renewable energy certificates by seven Indian states, with another nine states having now prepared drafts.

The Czech Republic is the only country to have fallen outside the top 30 countries, mostly due to various plans by Parliament to remove or significantly reduce solar subsidies.

Notes to editors:

About the Indices

The Ernst & Young Country Attractiveness Indices, which have been running since 2003, provide scores for national renewable energy markets, renewable energy infrastructures and their suitability for individual technologies.  The indices rank the renewables markets by country and technology, and are updated on a quarterly basis.

About Ernst & Young

Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 141,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.

Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com. This news release has been issued by EYGM Limited, a member of the global Ernst & Young organization that also does not provide any services to clients.

SOURCE Ernst & Young

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