U.S. the most attractive country for renewable energy investments: RECAI


The U.S. is the most attractive country for renewable energy investments, according to the May edition of the Renewable Energy Country Attractiveness Index (RECAI), published by the EY organization, every two years.

The report uses a thorough methodology that evaluates two main factors in countries’ attractiveness: their resources available for renewable energy generation and their policies and regulatory frameworks to allow and attract investments.

According to the most recent report, since 2019, the U.S. has held the first position among 40 countries. Moreover, the Biden administration has ushered a “new era” of energy policies to guide the nation towards decarbonization and net-zero emissions.

In addition, back in July, his administration passed an infrastructure bill to the Senate. The White House included a $550 billion investment for infrastructure, out of which $73 billion will be for clean energy developments, including electric vehicles, enhanced power infrastructure, and the expansion of cleaner fuels, such as hydrogen.

Furthermore, the U.S. aims at cutting its greenhouse gas emissions by 52% by 2030, based on 2005’s levels. In 2020, the U.S. added around 19 gigawatts of new solar capacity and 2,2 gigawatts of energy storage.

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U.S. leads the chart, Mexico struggles at the near bottom

Also, the U.S. is pushing forward its offshore wind energy industry. Just last September 15, the infamous Vineyard Wind project achieved financial close and started construction, the U.S.’s first offshore wind farm.

Consequently, the RECAI positions the U.S. at the top of the chart, whit a score of 70,7. Just below the U.S. there are countries like China, India, and the United Kingdom. Canada holds the position number 19, with a score of 55,4. Just below Canada, in the position number 22, is Poland, with a score of 54,3.

Additionally, the report notes that the Polish government has been pushing its nuclear energy sector and has awarded more than 1,7 GW of onshore wind and solar capacity to its grid. Also, it has adopted a new act to promote offshore wind; which aims at 5,9 GW of further capacity to be developed by 2030, under a CfD mechanism.

Finally, Mexico lags behind in the position number 33, with a score of 509. Before president Andres Manuel Lopez Obrador entered office, Mexico was in the spot number 7, as the Wholesale electricity Market that rose after the energy reform downgraded the costs for renewable energy.

However, the changing political landscape in Mexico has wiped almost all of its attractiveness; the country does not provide certainty to investors. In fact, Mexico has the highest wind energy and solar energy potential in the world. Those environmental factors prevented Mexico from falling to a lower position. Said Alfredo Álvarez, a lead associate of the EY organization, quoted by news outlets.

Finally, Mexico has the fourth spot of all Latin America, below Brazil, with the 11th spot; Chile, with the 12th; and Argentina, with the 23rd.

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