India, UK climb E&Y's renewables ranking

London, 27 July: India has become the world's third most attractive market for renewable energy investment, displacing Germany in the top three, according to Ernst & Young. The UK has also pushed ahead of Germany to fourth place, following the publication of the government's energy review this month.

"India's rise to third overall … has been precipitated by excellent national and regional government support for both foreign and local investment in renewable technologies," the consultancy says in its latest quarterly Renewable Energy Country Attractiveness Index. "Consequently, rapid growth is expected to continue in this market."

The report notes that installed renewables capacity in India – currently standing at 8GW – is now expected to double every five years, and is forecast to reach 20GW by 2012, twice the government's target.

Meanwhile, Jonathan Johns, a UK-based Ernst & Young partner, writes that the UK government's Energy Review has reversed a slide in the UK's attractiveness for renewable energy development.

He cites "a strong commitment to dealing with planning and grid issues" and "increased certainty of revenues". This certainty is boosted by planned reforms to the level of the renewables obligation, which requires electricity suppliers to source a rising percentage of their power from renewables, and by promised higher levels of support for offshore wind.

Meanwhile, Germany has sunk from third to fifth place, and is "facing a continuing slowdown in the domestic onshore market, despite good biomass and solar opportunities". This slowdown is a result of the declining availability of good wind sites, and strong turbine demand in the US leading to the export of German-built turbines.

Spain and the US remain in first and second place in the index.