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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."
In addition he says: "Despite recent predictions by the International Energy Agency that China may overtake the US as the world's biggest source of green house gasses within months, the Chinese government is showing a commitment to renewable energy sources. Its investment in renewable energy is increasing at an impressive rate, with the annual installation of wind turbines more than doubling in the last 18 months."
China has seen some large projects coming online. Experts think that the country's target to install 5GW of wind capacity by 2010 could be achieved within the next two years. Although this certainly represents large growth in relative terms, the installed wind capacity in China will constitute only a very small fraction of the country's total power capacity. Most of this is coal-fired power.
The Indian government meanwhile is stimulating renewable energy with fiscal incentives. The government has agreed on tax exemptions on wind turbine production. This is in addition to recent legislation on compulsory renewable obligations, which have encouraged more investment in renewable energy.
Source: engineer live and Ernst & Young
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