China toppled the US, which previously held the top spot since 2006, as the most attractive country for renewables investment. In June, the consultancy ranked China and the US in joint first place.

Ernst & Young said China’s rise to the top is driven by strong government support, favourable natural resources and solid industry commitment. The country’s relative economic stability amid global recession has also boosted its attractiveness.

The study said financing for wind projects in China has surged in 2010, while earlier this year the Chinese government announced plans to build 90,000MW of wind farms by 2015 to reach its emission reduction targets.

Meanwhile, policy setbacks in the US, in particular the failure to include renewable energy standards in the proposed Senate energy bill, saw the former number one suffer a two point drop to second place.

Ben Warren, environment and energy infrastructure advisory leader at Ernst & Young, said: “Although the United States remains a highly attractive location for investors in renewable energy, it is clear that recent events have stalled momentum. 

“The US market continues to have significant potential but requires consistent political support to provide investors with the long-term confidence they need.”

Eighth-placed Spain dropped one point amid concerns about retroactive changes to its solar photovoltaic tariffs, while third-placed Germany also slipped one point as tariff reductions are expected to stunt future solar installations.

In the c ase of China, Stephane Ardeca, a renewables analyst at Liberum Capital in London questioned how accessible the number one jurisdiction is to potential overseas investors.

“Even if China is the ‘most attractive’ that doesn’t help international players much if access is restricted for foreign companies,” he said, noting a contract round last year that saw foreign turbine makers disqualified.

Charlotte Dudley