07:44 GMT31 October 2020
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    India has replaced the US as the second most attractive renewable energy market, with China topping the list. The US lost due to a shift in domestic energy policy under President Donald Trump.

    New Delhi (Sputnik) — China and India have been ranked first and second respectively in Ernst & Young's (EY) annual ranking of the world's top 40 markets for investing in renewable energy this year. The US has dropped one rank to third this year from the second the previous year in the EY renewable energy country attractiveness index (RECAI).

    Both China and India have adopted sustained policy measures to diversify their energy mix and move towards cleaner sources, said the EY report. Not only are emerging economies like India and China moving away from hydrocarbons, a noteworthy trend in this year's ranking is that countries like Kazakhstan, Panama, and the Dominican Republic, which are taking pro-active efforts to reduce dependence on fossil fuels, have entered the list.

    In India's case, the country has taken strident steps to revive the renewable sector, in particular, with a focus on solar energy since Narendra Modi became Prime Minister in 2014. In fact, the Indian Cabinet on Wednesday cleared the proposal to construct 10 indigenous pressurized heavy water nuclear reactors with a total capacity of 7,000 MW.

    “A combination of strong government support and increasingly attractive economics has helped to push India into second place in the latest issue of our renewable energy country attractiveness index,” EY said in its report.

    The first-ever conference on renewable energy investment was held in 2015 with the private sector committing nearly $200 billion in funds. “This follows recent dramatic growth in renewable, with more than 10GW of solar capacity added in three years—from a low base of just 2.6 GW in 2014—and record new wind capacity installed in 2016–17 of 5.4 GW, according to official figures,” it said.

    Over the years, India has steadily improved its ranking. From ninth in 2013, it reached the third spot in 2016. In terms of capacity, as of March 2017, the country has a combined renewable energy capacity of 57 GW and is aiming to raise it to 175GW in the next five years.

    The competition from solar sector, which has seen a significant drop in tariff in recent months, affected pricing power of coal-based power plants.

    “Movements in the index illustrate the influence of policy on renewable energy investment and development – both productive and detrimental. Supportive policy and a long-term vision are critical to achieving a clean energy future,” Ben Warren, chief editor, EY Global Power & Utilities Corporate Finance Leader, and Renewable energy country attractiveness index (RECAI), said in a statement


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