Germany overtakes China as second-most attractive country for renewables investment
GERMANY has overtaken China to become the second-most attractive country in the world for renewables investment, research showed on Tuesday (Jun 13).
This was due to Germany’s efforts to speed up power market reform and move away from fossil fuels.
In an annual ranking of the top 40 renewable energy markets worldwide by consultancy EY, the US was ranked first, with Germany climbing one place to second position for the first time in a decade.
Germany was Europe’s biggest buyer of Russian gas until the war in Ukraine, and it has also been reliant on nuclear and coal. However, it closed its last three nuclear power stations in April.
“While this is a major milestone in its progress to accelerated energy-transition targets, there is likely to be an increase in the use of coal in the short term, to reduce the effects of intermittency in the power supply,” the report read.
Germany is aiming to have renewables make up 80 per cent of its energy mix by 2030. Currently, renewables account for 46 per cent of the total, up from 41 per cent at the start of 2022, according to the report.
The US maintained its top position in the index, supported by the passing of the Inflation Reduction Act last year. The law earmarked US$369 billion for investment in energy security and climate change.
However, there is a grid lock of renewables projects waiting to be connected to regional grids. The report noted that even though the offshore wind sector has grown, the US administration’s goal of having 30 gigawatts of offshore wind by 2030 is likely to be missed by 10 gigawatts, according to current construction dates announced by developers.
India moved ahead of Australia to sixth position in the index, due to the fast growth of its renewables industry, particularly in solar.
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