Renewable Energy Country Attractiveness Index (RECAI) ranks markets across the globe based on investment and implementation opportunities in the renewables space. Out of all countries assessed, the 40 best performing countries are listed in the index. South and Southeast Asia have a strong representation in the list, with more than seven countries making the top 40. China has been among the top markets worldwide for years now, although the country has slipped one spot to second, providing the United States to regain pole position.
The Covid-19 crisis also appears to have played a part in its dip, although the Big Four accounting and advisory firm anticipates a promising future for the country’s renewables market. India is the next country from the region to feature on the index, holding 7th place. The country has fallen significantly on the rankings, having previously occupied third position. According to EY, India is expected to fall short of its renewable energy generation target of 175GW by 2022, which has been branded ‘disappointing’ among the global community. The Covid-19 crisis has worsened this scenario. Japan follows in tenth place, having also fallen from its previous ranking of eighth. The country’s relatively low score in the solar power energy segment is partially responsible for this dip. Next on the list from South and Southeast Asia is South Korea in 17th place, however, the country has risen on the rankings from 20th. The Philippines comes in at number 28, having jumped up from its previous ranking of 32nd, which EY attributes to a recent government initiative aimed at attracting $2 billion of investments towards renewable energy. Under the green energy tariff programme, the government plans to hold a 2GW auction that will make up some ground towards the country’s 2030 target of 15GW. Vietnam rounds up the region’s presence ranking 39th. The position represents a devastating drop for Vietnam, given its previous rank of 23rd. The country had a boom-and-bust cycle in solar energy over the course of last year, while overall uncertainty has dampened Vietnam’s future forecasts as well.
Renewables sector in South and Southeast Asia will continue its growth. A PwC report from 2018 explained how the Asia-Pacific region as a whole is expected to see up to $250 billion in new renewable investments in the lead up to 2025.