Several years ago, investors realised that the most important investments in the are of renewable energy projects were made in the EU or the USA. Other regions hardly played a role. This was due on one hand to the safe conditions in Europe and the US, and on the other to the high feed-in tariffs. This, along with the sheer size of the two markets, made these investments attractive.

However, in recent years this investment behaviour has changed. A study published this summer by EY, the Renewable Energy Country Attractiveness Index report, argues that individual countries are as attractive for the development of renewable energy. The report clearly shows that in the current climate, it is much more exciting for investors to invest in emerging markets and developing countries.


This is partly due to continued lower cost, more efficient technologies and better revenue forecasts for such plants. At the same time, European countries such as Germany are lowering targets for renewable energy significantly, putting the brakes on the energy transition, while emerging and developing countries set new and more ambitious goals. As Ben Warren, head of the EY reports states:

Emerging markets are transforming their energy production at an unbelievably fast pace. Last year, investment into renewables in developing countries overtook that of industrialised countries for the first time.

As these trends motivate investors to invest in these countries, it is not surprising that in the aforementioned report, four of the top 30 countries are in Africa. Ten years ago, only China and India were attractive enough to compete with the EU; this report signifies a clear change that investors would be wise not to ignore.


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