Morocco, Greece and Denmark were named the top three markets “punching above their weight” when it comes to renewable energy, in a new spin on one of the green power sector’s longest-running rankings of policy ambition.
The trio came out top in a first ‘normalised’ version of the Renewable Energy Country Attractiveness Index (RECAI) from EY that adjusts the main rankings of policies and targets to reflect gross domestic product, showing how well nations are performing as potential investment targets in relation to the size of their economies.
Morocco came top of the adjusted index thanks to its ambitious plans for solar, wind and more recently green hydrogen, in pursuit of a 52% green energy share by 2030.
The RECAI authors added: “Its geopolitical position is another positive factor in Morocco’s journey to a low-carbon economy. Not only does it have two existing interconnectors with the Spanish power system, but a third is planned, as well as a fourth with Portugal. Morocco is also active in supporting other African markets with their clean energy transitions, drawing on its own experience.”
‘Normalised’ runner-up Greece was hailed for its renewables tendering programme that now encompasses offshore wind, while Denmark was boosted by “ambitious” plans to be a net exporter of green energy by 2030.
The main RECAI index – in which massive capacities tilt the balance to major economies – continues to be dominated by the US and China in first and second place respectively.
The US’s stock in renewable energy policy terms has been vastly boosted by the Inflation Reduction Act (IRA), which EY’s analysts said promises to be a “game changer” for green hydrogen in particular.
Germany moved up a place to third since the last RECAI six months ago, boosted by its ‘Easter Package’ designed to boost renewables deployment.
Ben Warren, EY Global Power & Utilities corporate finance leader, said: “Energy transition remains at the top of the agenda for government and business, made all the more urgent in light of the significant challenges facing the global energy market.
“This is reflected in the remarkable commitments made across global markets to drive uptake of renewable energy sources and reduce reliance on gas imports.”