China and India have surpassed the United States to become the two most attractive countries for renewable energy investment, a report by UK accountancy firm Ernst & Young showed on Tuesday.
In an annual ranking of the top 40 renewable energy markets worldwide in terms of allure, China was the top country, followed by India. The United States, which ranked the highest last year, slumped to third place, due to a shift in US energy policy under President Donald Trump.
Trump has issued orders to roll back many of the previous administration’s climate change policies, revive the US coal industry and review the Clean Power Plan, which requires states to cut carbon emissions from power plants.
“In the medium term, as renewable energy penetration rates increase, the Government will have to turn its attention to the ability of India’s grid to manage intermittent renewables, especially around the evening peak, when solar availability falls away. The cost and availability of energy storage technology could dictate how close India gets to meeting its renewable targets,” said Somesh Kumar, partner and leader, power and utilities, EY India.
“Meanwhile, India’s regulators must be mindful of the erosion of electricity market peaks caused by growing volumes of renewables and storage—this can undermine the economics of thermal power plants, risking the stability of the system as a whole,” Kumar added.Read More…