IHS Markit: Rankings Show United States Already the World’s Most Attractive Market for Renewables Investment

Rhea-AI Summary

The IHS Markit Global Renewables Markets Attractiveness Rankings show that the United States is the most attractive market for non-hydro renewable energy investments as of December 2020, thanks to strong market fundamentals and an appealing support scheme. Mainland China is third, while Germany ranks second, affected by market access challenges. The rankings assess 35 markets on factors like policy framework, investor friendliness, and infrastructure readiness, which will influence 90% of non-hydro renewables capacity additions by 2030.

Positive

• United States ranked first in attractiveness for renewable energy investment.
• Strong market fundamentals and available support schemes contribute to high rankings.
• Ranking assesses 35 markets expected to contribute 90% of non-hydro renewables capacity.
• The report highlights significant growth potential in onshore wind, offshore wind, and solar PV.

Negative

• Mainland China, despite high additions, ranked third due to market access difficulties.

As the Biden Administration aims to significantly increase federal investment in renewable energy under the American Jobs Plan, the United States already ranks as the most attractive market for renewables investment, according to results from a new ranking by IHS Markit (NYSE: INFO), a world leader in critical information, analytics and solutions.

Top 10 markets. IHS Markit Global Renewable Markets Attractiveness Rankings. (Source: IHS Markit)

The IHS Markit Global Renewables Markets Attractiveness Rankings, which tracks attractiveness for investment for non-hydro renewables (offshore wind, onshore wind and solar PV), placed the United States in the number one spot for the period ending December 2020. The United States claimed the top spot on account of sound market fundamentals and the availability of an attractive—though phasing down—support scheme.

Mainland China, which accounted for over half of the world’s total non-hydro renewables additions last year, ranked third on the attractiveness ranking—just behind number two Germany—as difficulties in accessing the market weighed down its overall score.

The IHS Markit Global Renewable Markets Attractiveness Rankings utilize an integrated proprietary methodology to provide comparable views of 35 markets that are expected to account for 90% of non-hydro renewables capacity additions to 2030.

The ranking evaluates each country on the basis of seven subcategories that include the current policy framework, market fundamentals, investor friendliness, infrastructure readiness, revenue risks and return expectations, easiness to compete and the overall opportunity size for each market. Each market is scored in individual categories for solar PV, onshore wind, offshore wind and an overall renewables score is calculated.

The overall country rankings are based on a combined score for offshore wind, onshore wind and solar PV that weights the different technologies based on their expected levels of installations over the next decade.

“Onshore wind, offshore wind and solar PV are set to account for over 80% of all new power generation capacity additions globally to 2030,” said Eduard Sala de Vedruna, executive director, global clean energy technology and renewables, IHS Markit. “While the lion’s share of 2020 capacity additions came

FAQ

What does the IHS Markit report say about renewable energy investment in the US?

The IHS Markit report ranks the US as the most attractive market for non-hydro renewable energy investments as of December 2020.

Which countries are ranked behind the US in renewable energy investment attractiveness?

Germany is ranked second, followed by Mainland China in third due to market access challenges.

What is the main focus of the IHS Markit Global Renewables Markets Attractiveness Rankings?

The rankings evaluate investment attractiveness in non-hydro renewables including offshore wind, onshore wind, and solar PV.

How many markets does the IHS Markit ranking assess?

The ranking assesses 35 markets expected to account for 90% of non-hydro renewables capacity additions by 2030.

What are the primary factors considered in the attractiveness rankings?

Key factors include policy framework, market fundamentals, investor friendliness, infrastructure readiness, and revenue risks.