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India ranked 3rd, US 1st in Renewable Energy Country Attractiveness Index released by EY

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India climbs to 3rd spot on EY indexIndia with a score of 66.2 has been ranked 3rd out of 40 countries in the 57th Renewable Energy Country Attractiveness Index (RECAI) – May 2021 – released by Ernst & Young Global Ltd (EY). The United States (US) topped the index, while China took the 2nd Rank.

  • India has improved its rank from 4th (in 56th RECAI) to 3rd due to its exceptional performance in the Solar PhotoVoltaic (PV) sector.  It’s Installed Solar PV capacity has increased to 39 GigaWatts (GW) in 2020.
  • The Global Renewable Energy capacity investment increased by 2% to USD 303.5 Billion in 2020 despite the pandemic. It is the 2nd highest annual growth.

RECAI

  • It is an biannual report being released since 2003.
  • It ranks the world’s Top 40 countries based on the attractiveness of their renewable energy investment and deployment opportunities.

Rankings

Rank Country RECAI Score
3 India 66.2
1 US 70.7
2 China 68.7

India’s Growth

i.The improvement in rankings is also due to Indian Government’s Policy ambitions.

  • The policies have made India’s Solar PV sector to be the most cost-competitive source of power in the Asian region.
  • The power generation from the Solar Sector is expected to  exceed coal before 2040.
  • India’s Installed Solar PV capacity in 2020 (39 GW) overtook the wind capacity for the 1st time.

ii.During the recent climate summit hosted by the US, India committed to set up 450 GW for Renewable Energy Power Capacity (installed) by 2030.

  • It will increase the share of renewable energy in overall power generation installed capacity to 54%, and share in overall gross generation to 36%.

Global Scenario

i.In order to achieve Net Zero emissions, the Global RE sector will require an investment of USD 5.2 Trillion.

  • RECAI 57 also highlights that Environment, Sustainability and Governance (ESG) goals are being prioritized on the investor agenda.

ii.US has topped the index due to factors like

  • Reacceptance of the Paris Accord, decision to cut GreenHouse Gases (GHG) levels by 50-52% as early as 2030 & achieving 100% carbon free power by 2034.

iii.China added 72.4 GW of new wind power in 2020. China& US have agreed to work together to tackle climate change.

Recent Related News:

April 22, 2021, India was ranked 87th in the Global Energy Transition Index (ETI) 2021 released by WEF in its report ‘Fostering Effective Energy Transition 2021’ edition. The index was topped by Sweden, Norway & Denmark.

About Ernst & Young Global Ltd (EY)

Global Chairman & CEO – Carmine Di Sibio
Headquarters – London, United Kingdom (UK)