According to the Ernst & Young 'Renewable Energy Country Attractiveness Index', the 5 most attractive countries for investment are
in that order. The index provides an overall score for renewable technologies that are currently entering the market on a large scale, i.e. wind, solar and biomass. Wind as the most important renewable from a business perspective today, is weighted 85%, solar and biomass respectively 5% and 10%.
For each technology, an index is constructed based on a mixture of infrastructure and technology factors:
- Infrastructure (35%): Market risk, Planning & grid connection issues, Access to finance
- Technology (65%): Power offtake attractiveness, Tax climate, Grant/soft loan availability, Market growth potential, Current installed base, Resource quality, Project size
Financial aspects, i.e. access to finance, power offtake attractiveness, tax climate and grants/soft loans, often regarded as the critical factor of success for renewable energy sources, are weighted together 35.5%. They're a very necessary, but far from sufficient condition for development.