Investors continue to bet on the Spanish market for investment in renewables and keep our country tenth in the ranking, according to the 57th edition of the EY Renewable Energy Investor Attractiveness Index (RECAI). The United States and China hold the first and second place, respectively, followed by India.
“Among the essential causes that explain the progressive improvement of the Spanish market in the RECAI index since 2017, the greater regulatory certainty and clear energy planning in the medium term would be highlighted,” explains Antonio Hernández, partner of Regulated Sectors and Economic Analysis at EY.
“And, in particular, the ambitious objectives established by the new Climate Change Law and the National Integrated Energy and Climate Plan by 2030. The incorporation of around 60 GW of renewable energy by 2030, the ambitious objectives included in the green hydrogen and storage roadmaps, together with the new approved remuneration mechanisms, would be behind this interest ”.
In the words of Antonio Martínez Mozo, partner of Energy in the Strategy and Transactions area of ??EY, “in Spain the investment appetite for the renewable sector is maintained”.
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“This is what has happened in the last two years, a period in which our country has been the second largest market in Europe in terms of volume of M&A transactions in renewables. This favorable trend for renewables transactions in Spain is expected to continue driven by investors already present who accelerate their commitment to renewables and the entry of new players with ambitious objectives for the Spanish market. “
ESG, fundamental
The EY report states that the objectives of environment, sustainability and corporate governance (ESG) are becoming a priority on the agenda of investors, while the interest of institutional funds in renewables continues to grow.
Despite the impact of the pandemic over the past year, global investments in renewable energy capacity grew by 2% to $ 303.5 billion, the second highest annual figure recorded to date.
Furthermore, future development to achieve net zero emissions is estimated to require a new investment of $ 5.2 trillion.
First places
The US maintains the first position with China and India closing the top 3 in the ranking
In this edition, the United States maintains the first position in the index and is expected to maintain it during the presidency of Joe Biden. Acceptance of the Paris Agreement, coupled with the recent announcement to reduce greenhouse gas levels by 50-52% by 2030 and reach 100% carbon-free power by 2035, will likely generate increased interest among stakeholders. investors for this country.
Similarly, China has remained a rising market, adding 72.4GW of new wind power in 2020.
For its part, India has risen to the third position in the ranking driven by the forecast that the generation of photovoltaic solar energy will exceed that of coal before 2040.
For their part, markets such as Japan and South Korea (8th and 17th, respectively) have also committed this year to the goal of zero net emissions. The report highlights that East Asia has a strong pipeline of green energy projects, with more than 800 initiatives and a potential investment of $ 316 billion.
Other markets have improved positions in the index, as various governments have taken steps to launch new offshore wind projects. For example, Poland, now in position 22, has adopted a new law to promote 5.9GW of offshore wind by 2030 through auctions. For its part, Brazil has published guidelines for tendering offshore wind energy projects, placing the country in eleventh position, behind Spain.
However, Germany drops one place in the rankings to 7th position due to the changes incorporated in the design of future onshore wind tenders, which has been criticized. Meanwhile, Italy rises two places to number 15 in the ranking after its government has proposed extending its 4.7GW program of auctions to support onshore wind power and solar photovoltaic until the end of the year.
