The chief executive of Acciona has expressed concern the US and EU were responsible for collectively installing 20% of the world’s additional renewables capacity last year.
During a panel discussion during the International Renewable Energy Agency’s (IRENA) 14th Assembly Jose Manuel Entrecanales said: “It is worrying that the US, Europe, and other advanced economies only installed 20% of the world’s new renewable energy capacity in 2023.”
These countries’ share of the global Gross Domestic Product (GDP) exceeds 50%.
Acciona’s chairman and chief executive said the major market economies are “losing ground” in the global process of decarbonising the economy.
He added last year China produced 70% of the world’s installed capacity “when it represents only 17% of the world’s GDP.”
According to Entrecanales, this imbalance is due to the fact “the main element for attraction of capital, which is key to developing renewable energy, is not working as well as it should”.
He said: “We tend to forget that the overwhelming element that moves private capital is the risk-reward equation.
“This needs to be enhanced to match the excellent performance of China in this industry.”
Entrecanales spoke during a panel discussion at IRENA’s assembly in Abu Dhabi alongside EDF chief executive Luc Remont, chair of the Global Renewables Alliance Julia Souder, vice-president of Jinko Solar Global Dany Qian and Sosai Energies chief executive Habiba Ali.
He added that there are challenges to renewable energy development in all regions of the world.
“Europe faces regulatory, transmission, network and pricing problems.
“Africa has scale and financing problems, while Latin America suffers from political problems adding that “currently, the US has done a very good job with the IRA [Inflation Reduction Act]”.