Updated on
The 60th edition of the Ey Renewable Energy Country Attractiveness Index (Recai) report has highlighted a strong acceleration by governments around the world towards renewable energies due to the volatile conditions of the energy market. Countries are expanding their energy plans to reduce their dependence on energy imports. The report also highlights the need to strengthen energy resilience, including the consolidation of renewable energy production, diversification of energy sources, and increased storage. These are the main priorities that emerge from this edition of the Recai.
Top countries for renewable energy investment
The United States, China, and Germany have taken the top spots in the ranking of the most attractive countries for renewable energy investment. The United States remains at the top thanks to the Inflation Reduction Act, which aims to promote green energy and hydrogen in particular. China continues to accelerate its transition to renewable energy and aims to reach carbon neutrality by 2060. Germany has risen to third place, and the United Kingdom has dropped to fourth. The Netherlands has entered the top 10 thanks to its ambitious program, which includes a goal of 70 GW of offshore wind energy by 2050. Greece also showed strong performance, driven by new targets of 15 GW of new green energy by 2030 and 2 GW of offshore wind energy in the same time frame.
Italy’s situation
Italy has risen from 15th to 12th place in the Recai rankings thanks to a combination of factors. The new draft of the Fer 2 Decree, which establishes new price support mechanisms, has provided incentives. Another significant factor is the announcement of 5 GW of offshore wind energy that will be auctioned off between 2023 and 2026, as well as the construction of the first offshore wind farm in the country.
There has also been growth in installations and an increase in the pipeline of projects, both onshore and photovoltaic. In Q3 of this year, 11.3 GW of onshore wind energy capacity was installed, up from 11.0 GW in Q1, with a 3% increase and 3.2 GW of projects in the pipeline for 2022-2027. Solar capacity installed in Q3 was 23.9 GW, up from 22.6 GW in Q1, with a 6% growth rate and 17.0 GW of projects in the pipeline for the coming years.
The authorization procedures for renewable energy projects are also accelerating in Italy. Offshore wind farms now only require a single authorization, rather than multiple permits. Regulations are expected to provide further support for renewable energy and associated technologies like batteries, which could further boost the market. Additionally, distributed energy generation from renewable energy sources is becoming increasingly popular and could support greater resilience in the electricity grid.
In the PPA market, Italy maintains a prominent role, ranking 12th (up from 11th in 2021). However, the high wholesale energy prices and market volatility have led to the first reduction in annual contracted PPA volumes since 2013. Despite this, there is a growing interest in decarbonization and securing a stable and cost-effective energy supply. This trend is expected to continue, expanding the demand and supply of ready-to-build projects.
Conclusion
The Ey Renewable Energy Country Attractiveness Index report emphasizes the crucial role of renewable energy for countries to reduce their dependence on energy imports and enhance their energy resilience. Italy’s ranking has significantly improved in this edition of the report, thanks to the new incentives, simplification of authorization procedures, and increased growth in renewable energy. The country’s ambitious targets for offshore wind energy and the acceleration of authorization procedures for renewable energy projects indicate a positive outlook for the sector. The country’s focus on distributed energy generation from renewable sources and the growth in the PPA market also present significant opportunities for the sector’s development. However, the volatility of the energy market and the need for a stable regulatory environment remain significant challenges that must be addressed. Overall, Italy’s performance in this edition of the report indicates the country’s potential to become a leader in renewable energy development and attract significant investment in the sector
