Asia Attractive for Renewables

China is the world’s most attractive country for renewable energy investment, according to a new study by Ernst & Young.

How do other Asian countries fare?

Despite the popular images of China’s coal-fueled economy and smog-ridden cities, nowhere else can match the Middle Kingdom for renewable energy potential, according to a new report from Ernst & Young, Eco-Business reported.

China invested more than $44 billion in clean energy projects in 2017, up from $32 billion in 2016, helping to place the country above the United States and Germany in EY’s global index for Renewable Energy Attractiveness.

China tops RECAI for the third year running, while India—which ranked second last year—has fallen below the US and Germany.

Ranked fourth, India added more energy capacity from renewables than coal for the first time last year, but the uptake of solar and wind has struggled to meet the country’s ambitious renewable energy targets.

Japan, ranking eighth, has dropped one place. Bankruptcies in more than 80 solar companies, as a result of acute tariffs and competition, have slowed progress in one of the region’s leading lights for renewable energy.

The Philippines ranks 21st out of 40 countries in the study. The archipelago has set the ambitious renewable energy target of 15.3 gigawatts by 2030—three times the installed capacity of 5,438 megawatts in 2010.

Thailand, a Southeast Asian economy striving to prioritize solar power, ranks 30th. Thai renewable projects totaling 1.8 GW of capacity are set to become operational by 2019. At 31st place, Taiwan has increased its attractiveness by committing to a 20% increase in renewables by 2020 and going nuclear-free.

After dropping out of the rankings last year, Indonesia has reclaimed a near bottom spot at 38. Despite growing demand for energy and abundance of renewable resources, Indonesia is struggling to attract investors.

To achieve the government’s ambitious target of 23% renewable energy supplies by 2025, an estimated $101 billion will need to be invested. The index refers to how attractive a country is to renewable energy investors. The stability and investment climate of a country are overarching concerns for EY’s measurement of renewable energy attractiveness.