THE ATTRACTIVENESS of the UK market for investment in renewable energy has ranked at a five-year low in a new report from professional services firm EY.
The UK slipped to seventh place in the latest quarterly Renewable Energy Attractiveness Index produced by EY, the first time the UK has been that low since December 2009.
The prospects for the renewables sector in the UK has been hit by government “mixed signals” and “policy tinkering” on subsidies, and increasingly dynamic international competition, according to EY.
Ben Warren, environmental finance leader at EY, said: “What we are seeing is a ‘perfect storm’ of reasons prompting a fall in the appeal of the UK’s renewables market.”
China retook first place in the ranking for the first time since May 2013, knocking the US off the top spot due to China’s aggressive technology targets and new efforts to open the market to foreign investors.
Germany, Japan and Canada make up the third to fifth positions, while India leapfrogs Britain into sixth, owing to a fresh energy strategy from the new Modi government expected to boost investment in the sector.