Video: Which power markets globally are most attractive for renewable energy investments?

During the next 10 years, over 5300 GW of nonconventional clean energy capacity is expected to come online worldwide. As a result, new opportunities are arising in both mature and developing renewable markets around the globe.

In this video, a set of charts shows part of the analysis that S&P Global Commodity Insights conducted to identify the most attractive markets for renewables investment globally. Experts assessed the promise of different markets using a coherent set of scoring parameters and depending on company risk appetites and business interests. This video shows scores for a sample of 12 markets (US, Canada, France, Germany, Netherlands, Spain, United Kingdom, mainland China, Taiwan, India, Australia, Brazil) and 4 parameters (Ease of Business, Profitability, Accommodation, and Regulation).

Findings from our market analysis include:

• While renewables markets are growing rapidly across the board, growth is concentrated in a handful of core markets. Policy drivers such as the US Inflation Reduction Act, China's 14th five-year plan, and the Fit for 55 initiative in Europe are massive catalysts to stimulate growth in mature markets. Mainland China alone will build over 40% of global clean energy additions in the next 10 years.
• The United States builds on its lead in overall renewables market attractiveness. Although there are competitive and infrastructure-related challenges to navigate in most US markets, the combination of access to capital, ambitious growth targets, and a comprehensive long-term incentive roadmap makes the US the top market globally. Germany, mainland China, Japan and France round out the top five.
• Technology trends and investor preferences make some markets more attractive to certain players than others. Some players will find competitive advantage in challenging development environments, while others can leverage their scale, experience, and development portfolio to outcompete competitors in markets characterized by intense competition.

Assessments for all 37 markets, 3 technologies and 18 parameters are available as part of our global power and renewables research. Learn more by visiting our Global Power and Renewables Service page.

Etienne Gabel, senior director at S&P Global Commodity Insights with the Global Power and Renewables team, specializes in the analysis of market and regulatory developments in power sectors worldwide.

Timothy Stephure, senior director, leads the Gas, Power, and Climate Solutions team for Latin America at S&P Global Commodity Insights.

Posted on 13 December 2023

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.