Power Engineering International has published an article looking at some of the key findings from research by PA Consulting Group to map energy investment potential around the world. PA’s Energy Investment Map ranks 30 countries and 11 different renewable and conventional generation technology against several criteria to determine where the best internal rate of return can be found.
The article reports on PA’s conclusions that China is currently the best country in the world for renewable energy investment, while India has the strongest potential for conventional power investors. It quotes PA’s analysis that China’s position “at the head of the class for renewables is a result of a relatively unique combination of extensive, high-quality renewable resources – and the potential for their development – as well as government support that provides attractive pricing for renewable energy”.
The article also observes that the US comes towards the bottom of the ranking for opportunities in both conventional and renewable generation, quoting PA’s assessment that “many key states have already met or exceeded their renewable targets, resulting in low prices for renewable energy credits. The effects on renewable investment economics are compounded by relatively low overall power prices”.
The article highlights PA’s finding that countries on the Arabian peninsular have made significant renewable energy progress, with Saudi Arabia “leading the region with one of the world’s most ambitious energy transition programmes supported by a market-based renewable energy policy”.
The article finishes with a round-up of the changing fortunes of renewables in Europe and a closer look at why countries such as Turkey, Saudi Arabia and Russia are promising investment regions for conventional power.