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Record investments in energy cannot maintain race for 2030 world target for renewable energy
Record investments in energy cannot keep up the race for the 2030 world target for renewable energy, according to a press release of EY Romania.
Despite the investment increase of 1,800 billion dollars in green energy in 2023, including 660 billion dollars in renewable energy, investments are still level needed to carry out COP28 target to treble renewable energy capacity by 2030. Network blocking and high capital costs may delay progress, even if there is great need of acceleration , according to the latest study EY Renewable Energy Country Attractiveness Index (RECAI 63).
Storing energy, including energy storing systems in batteries (BESS), can play an essential role in exceeding the challenge concerning network blocking, which has reached high levels in many mature markets. This RECAI edition is closely analysing BESS, exploring the way in which it can offer profitable opportunities to demanding investors.
“Romania has climbed three positions in the top ade by EY, to position 36, thanks to financing programs announced and laws on offshore wind energy. There is significant potential for further growth, by obtaining European certification of origin guarantees and facilitating energy stocking in batteries, aspects which could contribute to a better classification in future report editions,” said Mihai Draghici, consulting partner EY Romania.
As renewable energies proliferates and electrification grows, BESS will play an essential role in a dynamic energy system, equalizing demand and offer levels and contributing to delaying network extension and modenrization costs. The US, backed by a 30% fiscal credit, according to the law on reducing inflation, ranks first in the new EY top of the most attractive markets for BESS investments. China, with powerful government support, subsidies and plans to reduce BESS costs by 30% until 2025, ranks second. It is followed by Great Britain, with a sophisticated conception of the energy market and a new energy law which classifies BESS as production active stock. They foresee an increase of BESS implementation by four times, between 2023 and 2030, reaching 572 GW/1,848 Gwh.
In this edition of RECAI index, the first positions are preseved by the US (1st), China (2nd) and Germany (3rd), where investors are attracted both by the clear demand of renewable energy, and by the value established for projects. Constrictions generated by networks in Spain (12th) made the market get out of top 10, while Canada (9th)and Japan (10th) joined top 10 due to the clear intention to maximize offshore wind potential. Belgium is among the most important index evolutions, going up 4 positions and getting to 17th, as it intends to treble its offshore wind capacity by 2040. Argentina is now 26th, going up 3 positions due to the new government engagement to make economy more dynamic. Changes brought to costs of solar energy supply made Vietnam go down 6 positions (39th).
Denmark remains on first position for nominated index. Greece (+1), Chile (+2) and Finland (+3) go up in the top of smaller economies , ranking 2nd, 3rd and 7th, due to the ambitious plans of energy transition and attractive government stimuli. Greece has doubled its renewable energy capacity in the last 4 years, the renewable energy sector in Chile will double in the next ten years, while Finland has set ambitious targets to become the first European economy with negative carbon dioxide emissions, creating new opportunities for potential investors.