Ernst & Young finds that while China is maintaining its top position among all renewables, the United States retain first place for both solar photovoltaics (PV) and concentrating solar power (CSP).
Ernst & Young has released its Renewable Energy Attractiveness Index for the second quarter of 2012. The report finds that while China is maintaining its top position among all renewables, the United States retain first place for both solar photovoltaics (PV) and concentrating solar power (CSP).
Ernst & Young also finds that while new investment in the sector is up 24% from the first quarter of 2012 to USD 59.6 billion, mergers and acquisitions have fallen 50% to roughly USD 10 billion. The report also decreased the "all renewables index" (ARI) score of the United States by 1.5 points, to share second place with Germany.
“While the US and Germany markets are level within the ARI, the contrast between these two markets is evident," notes Ernst & Young Global Cleantech Leader Gil Forer.
"The upcoming elections have led to an understandable slowdown in the decision making process in the U.S., while Germany is pushing ahead with its ambitious renewable energy agenda – including the introduction of a new solar PV tariff and compensation for offshore grid connection delays."
Ernst & Young places India second in its solar index, representing a mix of PV and CSP, with Germany in second place for PV. The report also notes that China has increased its focus on domestic solar installations with a new target of 50 GW of solar by 2020.
The report stresses policy, and Ernst & Young states that governments in the West are still hesitant to commit to policies that could require short-term cost increases, in contrast to Asia where job creation remains paramount.