China Tops Renewable League; US Relinquishes Top Spot Held Since 2006 PR NewswireSeptember 8, 2010

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China Tops Renewable League; US Relinquishes Top Spot Held Since 2006PR
NewswireSeptember 8, 2010 LONDON, Sept. 8 /PRNewswire/ -- China has
succeeded the US as the most attractive location in which to invest in
renewable energy projects, according to Ernst & Young's latest Renewable
Energy Country Attractiveness Indices.China entered the Country
Attractiveness Indices table in December 2004 and, since then, has
progressed steadily to the top of the All Renewables Index. In the last
index, it was tied with the US.The US dropped two points in the indices, to
fall behind China, after a federal Renewable Energy Standard was not enacted
this summer. Construction of new renewable energy facilities is expected to
further slow down following the December 2010 expiration of an important
deadline in the Treasury grant program with no assurance of renewal,
generating investor uncertainty about the continuation of an effective
incentive mechanism.Ben Warren, Ernst & Young's Environment and Energy
Infrastructure Advisory Leader, explains, "China's steady rise to pole
position has been underpinned by strong and consistent government support
for renewable energy. This, together with substantial commitment from
industry and the sheer scale of its natural resources, means that its
position as top spot for renewable energy investment is
well-merited."Although the United States remains a highly attractive
location for investors in renewable energy, it is clear that recent events
have eased momentum. The US market continues to have significant potential
but requires consistent legislative support to provide investors with the
long-term confidence they need."Other markets, most notably Spain, are also
showing signs of wavering support largely due to 'tariff deficits' and the
underlying affordability of support mechanisms. This may remain a feature
for some time, and points to the need for governments to continue to make
the case for renewable energy and how it can add value to their
economies.Gil Forer, Ernst & Young's Global Cleantech Leader, comments,
"Cleantech, including renewable energy, represents the technology and
business model innovation that is driving the global transformation to a
more resource efficient and low carbon economy. A successful outcome of this
massive transformation requires collaboration among all stakeholders,
including policy makers."Country comparisonsThe indices see Spain receive a
single point downgrade largely as a result of current deliberations
regarding retroactive changes to the photovoltaic (PV) tariffs. If
implemented, these are expected to have a significant detrimental impact on
Spain's rating across the whole renewables sector, reflecting increased
regulatory risk of investing in Spain. Germany also dropped a point, having
finally announced cuts to solar PV tariffs, which are set to limit future
installations given the frantic rush to install in the first half of the
year prior to the announcement.India, too, suffered a one-point drop
following its government's mandate to use local PV manufacturers for the
22GW National Solar Mission. Indian PV module makers may not be able to keep
up with the surging domestic demand, impairing the country's ability to meet
its ambitious solar energy target.Australia increased its rating by one
point, following its Senate passing amended legislation that targets 20% of
energy from renewable sources while committing $652.5m (euro 458m) over four
years to set up a Renewable Energy Future Fund. However, doubts still remain
whether the new government will establish a national market for trading
carbon emissions.Japan saw a one-point increase, following a 2.6-fold growth
in it solar cell market in the financial year to March 31, owing to the
country's aggressive climate policies. New Zealand also rose a point,
following the launch of an emissions trading scheme in a bid to curb carbon
emissions. As a result,energy, transport and manufacturing industries will
have to pay for their emissions of gases which is expected to have a
knock-on effect in boosting renewable deployment in the country.About Ernst
& YoungErnst & Young is a global leader in assurance, tax, transaction and
advisory services. Worldwide, our 144,000 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 Copyright 2010 PR Newswire
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