China, India to Lead Luring Green Projects by '12Published by MAC on 2007-05-10
China, India to Lead Luring Green Projects by '12
10th May 2007
LONDON - China and India will become the most attractive countries for investment in renewable energy projects by 2012, Ernst & Young [ERNY.UL] said in a report on Wednesday.
In its quarterly Renewable Energy Country Attractiveness rankings, the accounting firm said the two Asian countries are expected to share the top three spots along with the United States on its overall All Renewables Index within the next five years.
For the first quarter of 2007 the United States retained the top place as individual states there continue to adopt legislation favourable to wind and solar power.
Ernst & Young ranks countries for investment in all forms of renewable energy and by individual types including wind, solar and biomass.
China maintained sixth spot on the All Renewables Index, although it climbed to fifth spot from eighth on the Wind Index.
"Despite recent predictions by the International Energy Agency (IEA) that China may overtake the US as the world's biggest source of greenhouse gases within months, the Chinese government is showing a commitment to renewable energy sources," Jonathan Johns, Head of Renewable Energy at Ernst & Young, said in a statement.
"(China's) investment in renewable energy is increasing at an impressive rate, with the annual installation of wind turbines more than doubling in the last 18 months."
China is set to overshoot a 5 gigawatt target set for wind generation installed capacity in 2010 after it hit 2.6 GW at the end of 2006, experts from the Global Wind Energy Council (GWEC) and their Chinese colleagues said on Tuesday. [ID:nL08269047]
India held second place on the Ernst & Young overall index again this quarter, with tax exemptions and government legislation on compulsory renewable obligations stimulating growth in the sector, the report said.
Five countries appeared on the 25-country index for the first time, with Poland ranking highest at 19. Brazil, Japan, New Zealand and Turkey were also placed, each developing their own renewable energy industries.
Poland has set renewable generation targets of 7.5 percent by 2010 and 14 percent by 2020, while Brazil aims to install 3.3 GW worth of renewable energy by 2008.
The UK was one of five EU nations to fall in ranking, dropping from fourth place to fifth on the overall index. Italy, the Netherlands, Finland and Austria also fell in the quarter.
"Although the UK has an abundance of natural (renewable) resources, it has not been as successful as it could have been in harvesting this energy," Johns said.
In March, the European Union resolved to slash carbon emissions by a fifth by 2020, and offered to go to 30 percent if other major nations follow suit.
The real issue is whether the UK will attempt to meet this EU target, Johns said.
"The heat and fuel sectors may struggle to reach these targets... one could argue that renewable energy requirements for electricity generation will need to rise well above the 20 percent to conpensate."
REUTERS NEWS SERVICE