In this issue:
Overview of indices 2Renewables to 2020 and beyond: 3it’s not just the shale gas challengeGlobal trends in biomass-to- 8power marketsLarge corporations — a new driving 10force behind renewable energyGlobal trends in geothermal power 12
Transactions and nance 14
All renewables index 16Wind indices 19Solar indices 20Country focus — China, Germany, US, 21India, France, UK, Canada,South Africa, MoroccoGlossary 30Company index 31Ernst & Young services for renewable 32energy projectsContacts 33Commentary — guidance notes 36Recent Ernst & Young publications 37
Going once, going twice, sold! These are the words echoing across today’s globalrenewables market as policy-makers deploy alternative ways to support green growth.
Against a backdrop of surging subsidy decits and public outcry against escalating energy
bills, capacity auctions are now becoming the preferred policy mechanism and this issueof the
Country attractiveness indices
(CAI) analyzes these dramatic changes.The end of 2012 witnessed a host of projects under the major government-led
procurement in South Africa reach nancial close, while Morocco, France, India, Egypt and
Argentina also announced various technology auctions, most due to take place in 2013.
However, the diminishing role of subsidies and other nancial incentives should not be
overstated. The resurrection of the US wind sector following the 11th-hour extensionof the Production Tax Credit (PTC) and India’s ongoing anxiety as it awaits news on itsown subsidies, highlight how pricing mechanisms can dramatically impact deployment.Indeed, there are still examples of countries relying heavily on subsidies to kick-start theirrenewables sector and, if Japan or Romania are anything to go by, it seems to be working.Yet, previously strong markets such as Spain and Greece continue to fall in the index as
a result of harsh measures to combat subsidy decits. It seems that even Germany is being
forced to reduce support in light of a proposed freeze on consumer surcharges. France,meanwhile, is using a six-month energy debate to take stock of its long-term strategy.China, however, has found an innovative way to steer its renewables market throughthis challenging period of consolidation, grid constraints and protectionism. Increaseddomestic targets and outbound investment, often backed by the state-run ChinaDevelopment Bank, are helping to prop up the country’s clean energy sector, as Chinese
companies pursue opportunities to bundle nance and equipment packages for projects
in Latin America, MENA and Australia.
But signicant barriers remain. Investment in infrastructure has become a recurring
theme, with many countries — China, India, Germany and Denmark to name just afew — now battling with aging or capacity-constrained grids, as well as balancingissues from increasing intermittency as more renewables are deployed. It is thereforeanticipated that capacity markets, such as those proposed under the UK’s new Energy Bill,and cross-border interconnections, such as the North Sea “super-grid,” will becomeincreasingly important as a means of creating security of supply.The other “obstacle” is the “g” word. Cheap gas in the US has caused debates worldwide onthe cost-effectiveness of renewables, and many in the sector fear that a “dash for gas” inpursuit of lower capital costs could divert attention away from greener energy solutions.The lead article in this issue discusses this shale gas challenge, as well as commentingon low carbon prices and nuclear rollout or reduction plans — all in the context of paintinga picture for renewables through to 2020.
Renewable energy countryattractiveness indices
February 2013Issue 36