The latest Ernst & Young Renewable Energy Country Attractiveness Index states that China and India will become the most attractive countries in terms of the potential for investment in renewable energy. This is predicted to happen in 2012. China has climbed three places up the wind index and now has reached the fifth position. India was already very high in the list, and continues to be the second most attractive country in the world for investment in wind energy. The United States tops the list. The country is currently the best place in the world for investor capital in renewable energy. In recent years, large sums of money have been invested in the green energy sector by overseas utilities and a buoyant wind sector.

Jonathan Johns, who is Head of Renewable Energy at Ernst & Young: "The US continues to be the global leader for investment in renewable energy. However, corporate and institutional investors have started to show a greater interest in China and India, as their economies accelerate and legislative changes are introduced that help to foster renewable energy generation."

China is working on a new energy law, which will form the basis of the country's energy policies. A first draft is expected to be circulated by the end of this year, said the National Development and Reform Commission (NDRC). Many energy experts have claimed that such as energy law is necessary for the many energy projects and reforms that China will face in the coming decades. The law is expected to take two years before it is passed by the legislature. It should define clearly  what the regulations for foreign acquisitions are, and it will establish an authoritative body that needs to approve all energy projects. Experts also recommended to establish clear rules for the central government and local authorities, and make it clear which level of government has decision power over which parts of the energy system. Besides energy, the law will also include regulations on environmental and safety measures.

Dunhuang City, in the northwest Gansu Province in China, is planning to build the largest centralized solar plant on earth, according to local government sources. The project will have an installed capacity of 100 MegaWatts, and costs are projected at about 6 billion yuan (~764 million U.S. dollars). Construction of the solar power station is expected to last five years. Currently, the most ambitious proposal for a centralized solar plant is the 62 MegaWatts plant in the south of Portugal. The largest solar station that is fully operation is only 5 MegaWatts, and located in Leipzig, Germany. This solar plant has 33,500 solar panels.

The city authorities have teamed up with the Zhonghao New Energy Investment (Beijing) Co., Ltd., and signed a letter of intent with this company. The plant will be constructed in the oasis town of Dunhuang, and cover a total area of 31,200 square meters. The town receives very large amounts of sunshine: 3,362 hours per year. Therefore, it is an attractive location for the development of solar power. Also, it has good access to power transmission.

The German School in Shanghai will soon be completely power by solar energy. The German government has sponsored a solar roof project, and the school is its first beneficiary. The school made an announcement last week that it will start a project to become completely grid-independent and generate all its electricity using solar panels. This means a facility with four inverters and 96 solar moduls will be installed. This system will generate approximately 16,000 kilowatt-hours per year, the equivalent of 30 households. The German Energy Agency launched the project to promote renewable energy and specifically solar technology among various German communities around the world.