The UK has fallen to 14th place, an all-time low, in EY’s latest Renewable Energy Country Attractiveness Index, on the back of Brexit, DECC’s dismantling and approval of the Hinkley Point C nuclear plant.
EY said the UK’s standing was at odds with other European countries, which regained ground after falling behind emerging markets in the previous index in May.
France, for example, moved up one position to seventh as a result of the country’s plan to tender for 3GW of new solar capacity over the next three years, EY said.
Belgium, Sweden, Ireland, Norway and Finland also climbed further up the ranking of 40 countries, it added.
The US, China, India, Chile and Germany remained unmoved in the index top five.
EY head of energy corporate finance Ben Warren said: “Continued uncertainty around the government’s energy policy has created a confusing picture for investors seeking a low-risk return.
“With one more big decision, this time on the future of untested tidal lagoon technologies, expected in the coming months, the government clearly believes that easy to deploy and cost efficient technologies such as onshore wind and solar are not the answer to the UK’s energy security conundrum.”
But, Warren said, the last year has seen a significant increase in investment in battery storage in the UK.
“The availability of contracts and continued research and development investments, particularly in the US, will continue to drive down costs and improve returns from investment in battery storage,” he said.
“No doubt there are still challenges to be overcome and questions to be answered around affordability and availability,” he added.
“But if the market is ready and willing to innovate, battery storage, coupled with renewables, can help improve reliability and consistency of output to create a far more attractive sector.”
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