US is First in Renewable Energy

Ernst and Young’s most recent quarterly Renewable Attractiveness report reveals that the United States has regained its top spot as the most attractive country for renewable energy. China had taken over in 2010. States, led by California, “were the driving force behind this shift, offering insight into the nation’s diverse renewable energy markets, energy infrastructures and their suitability for individual technologies. Most notably, the report highlights that, despite uncertain macroeconomic conditions, renewable energy – particularly in states like Massachusetts, Colorado, Texas and California – is positioned very favorably to benefit from future investments.

Behind California in the “All Renewable Index” were Southwestern neighbors Colorado and New Mexico. In fact, New Mexico ranked among the top five in long-term wind and long-term solar indices. California, by far the largest state in the union in terms of population, was ranked number one in both of these, as well as the geothermal index, coming in second behind Maine in the biomass index. California was the only state ranked in all four categories, leading to its top overall ranking.

As for the global outlook, Ernst and Young reports that last year brought the highest levels of new investment for clean energy, but the future is more uncertain.

The renewables sector will continue to prosper in 2012 in the emerging markets, thanks to ambitious installation programs securing investments, while more established markets will face increasing financial constraints, especially within the Eurozone. The sovereign debt crisis continues to stifle renewable energy investment in the Eurozone, along with Governments scaling back their ambitions for the sector. Simultaneously capital scarcity and increased competition from Asia will continue to put pressure on developed markets for the foreseeable future.

The report also cites issues of affordability and competition from efficiency measures with regards to future growth.

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