November 2022 | 60 edition
Renewable Energy Country Attractiveness Index

RECAI

Can decentralizedenergy getgood enough,fast enough?

Start

Contents

03

04

05

Foreword

RECAI 60

PPA Index

RECAI 60

06

12

20

PPA Index

Regional focus

Key developments

Foreword

Key developments

Analysis

Renewables highlightsfrom around the worldDecentralized energy
markets: the futureof distributed energy andthe implications
for energy resilience

Promising markets punching
above their weight

24

27

33

Regional focus

Insight

Data and methodology

Contacts

Insight

Why the renewables sector
must meet cybersecurity
challenges head-on• RECAI 60

Analysis• PPA Index

Data andmethadology• Normalized index

Contacts

Renewable Energy Country Attractiveness Index 6002Foreword

Can the renewables sector seize thepower of decentralization to secure aresilient future?
The need for energy resilience has never been
more urgent. Ramping up renewable generation,
accelerating energy diversification and increasingenergy storage are global priorities amid
heightened geopolitical tensions, supply chain
shortages, an increase in extreme weather eventsand soaring natural gas prices.
The collective need for resilience comes withanother testing proposition: how to accelerate theintegration of increasing amounts of renewableenergy into grids. In this edition of RECAI, we
focus on the key role distributed energy resources(DERs) and smart grids play in the energy
transition.1

Arnaud de Giovanni
EY Global Renewables Leader

Decentralization has been talked about for
decades but, as markets seek to rapidly integrate
more renewables and improve grid flexibility, it isencouraging that now, with stronger regulatory
support, we are beginning to see real progress.
Governments are increasingly mandating smartgrid installation, while growing policy support —notably, the European Commission’s REPowerEU
plan and the US Inflation Reduction Act — will
provide subsidies and tax credits for DERs. Signals
are being sent that an ideal climate is emerging forinvestment in DERs.2
There are good signs that such near-term energy
policy intervention and acceleration of renewableenergy sources will reduce some of the current
risks in the system. Additionally, this should offer
improved visibility over what a potential power
price realization will be in the next few years
and support continued growth, while potentially
offsetting the implications of windfall taxes.
For countries to reach net zero, however,
the integration of renewables must improvesignificantly. DERs have a vital role to play inallowing a range of green energy sources tobe integrated into the grid, but delivering new
and more efficient approaches to permitting,connecting and managing energy flows are
particularly urgent.

Another pressing issue for the renewables
industry is that of cybersecurity. Smart gridtechnologies, which help integrate, monitor,
control and steer bidirectional flows of energy,
significantly heighten the risk of cyber attacks.
This edition of RECAI also explores how markets
can strengthen their cybersecurity strategies
in the face of such a rapidly expanding threat
landscape.
On the ranking side, there is an important newfeature in this edition: a new index, alongside
the RECAI ranking, that has been normalizedwith gross domestic product (GDP) to control
for economic size. The resulting ranking
showcases which markets are performing above
expectations for their GDP, creating attractive
alternatives for potential investors.
Morocco (normalized RECAI ranking: 1, RECAI
ranking: 19), for example, is making use of its
topographical features to build flexibility into its
power system, with wind expected to overtake
solar in the coming decade and pumped storagehydropower being developed in its mountainous
areas. Green hydrogen, meanwhile, is seen
as a key aspect of decarbonization in Chile(normalized RECAI ranking: 5, RECAI ranking:17), which hopes to become a top exporterof the fuel, and Portugal (normalized RECAI
ranking: 8, RECAI ranking: 25) is a good exampleof the importance of government commitment torenewables.
Policy support for renewable energy sources
is gathering momentum across the globe,
and this is helping to reduce risk and expand
opportunities. With a more energy-resilient
future on the horizon, now is the time to seize
the power of a more flexible energy system.

Foreword

Key takeaways

RECAI 60

• The transition to renewable energy has
become even more urgent amid soaringgas prices, geopolitical tensions, supply
chain shortages and extreme weather
events.
• DERs and smart grids will be key tosecuring energy supplies and getting theworld to net zero by 2050.

Key developments• Near-term policy interventions are
helping reduce risks in the system, butmore regulatory support is needed acrossthe board.

Analysis• Cybersecurity will need to be prioritizedas energy infrastructure incorporates
greater levels of new technology that rely
on connectivity to the Internet of Things.

Regional focus• Some markets are spearheading thetransition disproportionately to theiractual size; our new ranking aims tounderline which ones they are.

Insight

Data andmethadology

Contacts

Ben Warren

RECAI Chief editor
EY Global Power & Utilities
Corporate Finance Leader

PPA Index

Renewable Energy Country Attractiveness Index 60

03

RECAI 60
-1

Index

US

China Mainland

1

2

Since 2003, the biannual RECAI has
ranked the world’s top 40 markets on
the attractiveness of their renewableenergy investment and deployment
opportunities. The rankings reflect ourassessments of market attractiveness andglobal market trends.

3

Averaging 1GW of new solar PV permonth, Brazil now has 19GW of solar
installed. Federal lawmakers are
considering a draft bill to fill the regulatory
gaps that investors believe have slowed
the considerable renewables potential.

UK

0France

5

6

4

3

India
8

6
9

Thailand 40
40
38

Indonesia 39

35

Vietnam 36

30

No change in attractiveness sinceprevious index

32

33

Austria

Current ranking shown in circles withprevious ranking noted at the bottomof each segment

34

Norway 34

21

Turkey

20
26

30

Egypt

16

19
25

31

15

14
33

32

14 Brazil

16

37

Switzerland

13 Ireland

13

31

29

Taiwan28

27

Philippines

28

27

26

Argentina

23

25

29

22

24

Belgium

Portugal

24

23

18

17

17

18
19

22

21

Finland20

IsraelMoroccoSweden+3

Italy

CanadaGreece+1

Kazakhstan
Set to launch 40 renewable energy
projects by 2025 as part of its ambitious
decarbonization targets, Kazakhstan has
amended its renewable energy auction
prices to protect investors from currency
devaluation against the US dollar.

UK
The fourth round of the Contracts forDifference scheme has allocated 11GW
of new renewable capacity at record low
prices. In efforts to limit consumer energy
bills and decouple renewables pricing
from the gas market, the government has
considered introducing a voluntary CfD
for operational renewables projects.

Indonesia

The government released a draft FER
II Decree setting out new price support
mechanisms, and announced 5GW of
offshore wind power auctions to take place
between 2023 and 2026. This follows thecompletion of its first utility-scale offshore
wind farm.

Chile

Poland-1-6Foreword

TurkeyThe renewable energy market isstruggling from the devaluation of thedomestic currency. The market’s feed-in
tarrif scheme, which started in 2021, isdenominated in Turkish lira, so has lostcompetitiveness for investors against otherglobal schemes.

Indonesia has issued regulations, including
fiscal incentives, to encourage renewableenergy investment, and has plans to retire
15GW of coal-powered generation. The
high capital cost of decarbonization efforts
will be supported by donor countries,
including the US and Japan.

12 Italy

12

36

Kazakhstan 35

+4

11
15

-5

GreeceGreece awarded 538MW of capacity in its
most recent renewables tender.

11 Denmark

10

Decreased attractiveness comparedwith previous index

39

South Africa 37

MexicoIncreased attractiveness comparedwith previous index

43

10 Netherlands

8

+5

Japan

9

7

Jordan 38

Spain

5

China Mainland

Spain
When launching a 3.3GW renewable tenderin November 2022, a budget of around€3B (US$2.99b) will be used to award up to
1.8GW of solar PV and 1.5GW of onshore
wind. PV generation in the first five monthsof 2022 was 40% higher than in the same
period of 2021.

China Mainland is set to install a record
156GW of wind and solar capacity by theend of 2022, a 25% uplift on its previously
record-breaking 2021 installations.

Australia
72+1Germany
4

1BrazilRECAI 60

PPA Index

Key developments

Analysis

Regional focus

VietnamVietnam is attracting insufficientinternational finance to meet capacity
targets due to factors such as difficult
permitting procedures, price uncertainly
and unbankable power purchaseagreements (PPAs).

Insight

Data andmethadology

Methodology
See page 29 for RECAI methodology.

Contacts

South Korea
Renewable Energy Country Attractiveness Index 60

04

PPA Index

Record high power prices andextreme market volatility are set to drive
the first year-on-year reduction
in corporate power purchase agreements(PPAs) signed since 2013

Spain

Germany

Germany

1

US

2

UK

3

4

Australia

56

Following an extended period of
exponential growth, the volumeof power generation committed
through PPAs in 2022 is set tobe less than 2021, although
expected to be greater than 2020.
The market has shifted in favorof sellers, with high demand from
corporates seeking to use PPAs
as a long-term hedge against
fluctuations in the wholesale
power markets. However,uncertainty around government
policy and rapidly changing costprofiles have left developers
struggling to reach agreementson commercial terms.
PPAs are becoming increasingly
viewed as a valuable financial
tool and a strong green credential
by companies that have alreadygained RE100 status. The large
gap between low long-term PPA
prices and high short-term market
prices gives corporates an earlyfinancial benefit, and developers
a long-term monetary boost andflexibility when compared with astate subsidy in many markets.

1

While current market conditions
have been a stumbling block for the
execution of PPAs, the fundamentals
remain strong for further global
market expansion.

3

2

4

5

9

Romania24

28

Greece23
25

27

Thailand

28

22

19

21

18 20

26

13
15

Japan

15

Ireland17
22

21

Belgium
Colombia

20

19

12

Italy

PolandPortugal

Previous struggles in the PPA market have taken
a positive turn with the Green Access Rules, issued in
July, aiming to provide long-term clarity with respect toopen access costs and relaxing the eligibility limit to allow
a greater range of offtakers to access the market. It also
allows greater offtaker flexibility with respect to purchasing
and consuming energy.

Japan
The market has phased out full feed-in tariffs in favorof a feed-in premium that is sensitive to market pricefluctuations, creating a consumption gap to be filled by
PPAs. Following the first Japanese corporate PPA between
Amazon and Mitsubishi in 2021, there has been steady
growth in the market, with a number of corporates —including Seven-Eleven and NTT — entering into an array ofoff-site and on-site offtake arrangements.

BrazilEgypt

PPA Index

Key developments

Analysis

Regional focus

Insight

South Africa
The first large-scale corporate virtual PPA in South Africa
was signed recently between SOLA Group and mining andprocessing company Tronoz for a 200MW solar project.
Other large industrial players in the market, including Sasol
and Air Liquide, are in the process of procuring PPAs,
reflecting the momentum building in the space.

Chile

18

South Africa
MoroccoFinland

14 Norway

16

16
23

11

13

12

25
24

Sweden11

1726

Ethiopia

108Current ranking shown in circles withprevious ranking noted at the bottomof each segment

27

Netherlands

7

New entry

29

India

9

14

No change in attractiveness sinceprevious index

29

Lithuania

Denmark10

Decreased attractiveness comparedwith previous index

30

India

8

6

Increased attractiveness comparedwith previous index

Bulgaria

RECAI 60

France7

Foreword

The market is seeing a distinct increase in PPAs for
operational and repowered post-EEG subsidy assets.
The current high price environment is allowing larger
PPA revenues to compensate for maintenance orrepowering costs accrued by the generator.

Data andmethadology

Contacts

Methodology
See page 31 for PPA methodology.

Renewable Energy Country Attractiveness Index 60

05

Key developments

Renewables highlightsfrom around the world
Governments around the world are accelerating
their renewables programs to help reduce theirreliance on imported energy, as geopoliticaltensions and economic uncertainty continue tomake this a volatile and unpredictable time.
Here, we look at key developments within 10 global markets — from the biggest
change to German energy policy since 2017 to new US legislation that could bea game changer for its green hydrogen industry.

1

2

No change

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RECAI ranking

RECAI ranking

3

4

Up 1

Down 1RECAI ranking

Foreword

RECAI ranking

RECAI 60

6

7

No change

No change

RECAI ranking

RECAI ranking

11

14

RECAI ranking

RECAI ranking

No change

PPA Index

Down 1Key developments

Analysis

16

19

RECAI ranking

RECAI ranking

Up 5

Regional focus

Up 1

Insight

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

06

Key developments

1

No change

RECAI ranking

The US: Green hydrogen set for breakthrough after passingof Inflation Reduction Act
The Inflation Reduction Act, passed in August 2022, is being viewed as a gamechanger for the US green hydrogen industry. Tax credits of up to US$3/kg for
10 years will make green hydrogen produced in the US the cheapest form of hydrogenin the world. Green hydrogen is currently being produced in the US Northwest
at US$3.73/kg, so a US$3/kg tax credit would bring the cost of production for adeveloper to US$0.73/kg, cheaper than blue and gray hydrogen.3
Reaching this price would also make green steel cost competitive with steel made fromfossil fuels, which would stimulate demand for green steel, and could spark demand forgreen cement and green glass made with green hydrogen.
The landmark Act, which includes US$369b in spending and green energy-related tax
credits, will also be a major boon for the market’s solar sector.4 With a target to reach
50GW of domestic manufacturing capacity by 2030, the Act’s tax credits, grants,
low-cost loans and other support will play a key role in developing a full domestic solar
supply chain. Last year, the US installed 23.6GW of solar capacity, a 19% increase
versus 2020.5

2

No change

RECAI ranking

China: Record year expected for wind and solar

Foreword

The China Renewable Energy Engineering Institute, a leading think tank, has
projected that the market will install a record 156GW of wind and solar power
this year, up 25% from 2021, which was also a record year. The forecast predicts
that 100GW of solar, 50GW of onshore wind and 6GW of offshore wind will be
added. In the first five months of 2022, China added 35GW of wind and solar, but
installations are expected to accelerate toward the end of the year as developers
and local governments push to meet annual targets.6

RECAI 60

PPA Index

Despite challenges to global energy security, China remains committed toaccelerating its renewable energy transition, and seeks to bring emissions to apeak by 2030. Its National Energy Administration says the market remains on
target to increase the portion of nonfossil fuel energy in overall consumption by
an average of one percentage point per year from 2022 to 2030. Last year, wind,solar, nuclear and hydropower supplied 16.6% of China’s energy needs, an increase
from 15.9% in 2020.7

Key developments

Analysis

As part of China’s five-year plan for the renewable energy industry, it is aiming to
generate one-third of its electricity from green sources by 2025. The market has
also vowed to increase total wind and solar capacity to 1,200GW, nearly double
the current rate, and is aiming to start cutting coal use from 2026.8

Regional focus

Insight

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

07

Key developments

3
Up 1

RECAI ranking

Germany: Historic renewable energy package approved
Seeking to reform energy legislation to achieve climate neutrality and wean
itself off Russian gas, the German government has approved the Easter
Package, representing the greatest change to the market’s energy policy since
the introduction of competitive auctions in 2017.
It has set targets to raise the share of renewables in the power mix to 80% by
2030 and to nearly 100% by 2035. Last year, renewables comprised 42%.9More ambitious annual auction volumes and wind energy installation targets
have now been set. Beginning in 2025, Germany will aim to add 10GW of new
onshore wind capacity each year, a huge commitment considering it added
just 1.9GW last year. New offshore wind targets have also been set — 30GW
by 2030, 40GW by 2035 and 70GW by 2045 — and permitting procedures
shortened. Meanwhile, annual auction volumes for onshore wind will be raised
to 12GW annually, which would put Germany on a path to 115GW of onshore
wind capacity by 2030.
Solar power is expected to soar too, with a target set to reach 215GW ofcapacity by 2030, up from 59GW at the end of last year. This will require solar
expansion to rise 22GW per year on average, up from 5.3GW last year.10
The expansion of renewables will be met with the addition of 36 new grid
expansion and optimization projects. Renewable energies will also be classified
as an “overriding matter of public interest and public security” in Germany’s
constitution. This will accelerate approval of new projects and cut delays causedby legal appeals, particularly against wind power.11

4Down 1RECAI ranking

The UK: Offshore wind gets boost from Made in Britain
and Contracts for Difference

Foreword

The UK lost its top ranking for installed offshore wind capacity this year to
China, but does boast the largest pipeline.12

RECAI 60

Offshore wind featured prominently in the government’s Made in Britain energy
strategy, which set an ambitious target of 50GW by 2030, a significant increase
from its current capacity of 12GW. New planning reforms are expected to slash
approval times from four years to one. Floating wind will also be accelerated,with a target of 5GW.13

PPA Index

Interest in the sector was on full display early this year when Crown Estate
Scotland awarded option agreements to 11 floating wind projects with 15GW
capacity.14

Key developments

Meanwhile, the UK’s fourth allocation round of its Contracts for Difference
scheme saw many successful offshore wind projects, including Ørsted’s 2.85GW
Hornsea Three project, Red Rock and ESB’s Inch Cape 1.8GW phase 1, andScottish Power’s East Anglia THREE 1.37GW phase 1. The strike price foroffshore wind was the lowest of all technologies, at £37.35/MWh (US$42.04/
MWh), which marks an almost 70% drop from the price in the first allocation
round in 2015. A total of 93 green energy projects were given the go-ahead in
the scheme, aiming to deliver nearly 11GW of renewable energy that will comeonline in 2023 and 2024.15

Analysis

Regional focus

Investment flows have also been strong, with the UK Infrastructure Bank
announcing a £22b (US$24.9b) investment plan in June. Renewable energy
will be its largest investment sector, with funding earmarked for low-carbonhydrogen, energy storage and grid networks.16 In July, the UK government also
unveiled two hydrogen investment strategies — the Hydrogen Business Modeland the Net Zero Hydrogen Fund — that will offer subsidy options and grantfunding.17

Insight

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

08

Key developments

6

No change

RECAI ranking

Australia: Eyeing renewable energy exports by 2030
Australia is undergoing a major shift in energy policy following the Labor Party’s
election victory in May. After years of general noncommitment, the Australian
government passed legislation in September for a 2030 target of cutting
greenhouse gas emissions by 43% below 2005 levels.18 It also announced
it will cut tariffs and taxes on electric vehicles, and introduce subsidies, aswell as building charge points every 150km along the national road network.
Additionally, it will convert 75% of the government’s car fleet to zero emissions
and establish a hydrogen refueling network for heavy vehicles.19
Australia now has its sights set on becoming a major exporter of renewableenergy by 2030, through ramping up solar, onshore and offshore wind capacity,and generating export quantities of green hydrogen.
The market’s Offshore Electricity Infrastructure Act 2021,20 introduced in
December 2021, has resulted in multiple offshore wind projects being proposed,with the federal government specifically identifying six regions that have worldclass potential.21
Meanwhile, the Illawarra Renewable Energy Zone in New South Wales, locatedabout 100km south of Sydney, issued a call for registration of interest in
developing large-scale projects. It has attracted AU$43b (US$28.7b) worthof potential investments, with 44 proposals received for onshore and offshorewind, solar, energy storage, pumped storage hydroelectricity, green hydrogenand green steel projects, with a potential capacity of 17GW. Wind power
generated the most interest, with 10 projects proposed, accounting for AU$35b(US$23.4b) of investment and 12.9GW of potential capacity.22

7

No change

RECAI ranking

India: Offshore wind potential gets a boost

Foreword

Facing sluggish wind power growth compared with solar, the Indian
government has set its sights on accelerating offshore wind generation, with atarget of reaching 30GW by 2030.

RECAI 60

It will put 4GW of capacity off the coast of Tamil Nadu, in the southeast ofIndia, up for auction before the end of 2022. This will be the first of three yearsof 4GW of annual bidding invited for projects in this region, as well as Gujarat in
the northwest. After this three-year process, a project capacity of 5GW will bebid out each year until 2030.

PPA Index

The high costs facing early offshore wind projects, combined with the low costof onshore wind and solar power, have held back the offshore wind sector
in India. To give it a boost, transmission from an offshore substation to theonshore grid will be provided by the government free of charge for all windprojects bid on before fiscal year 2029–30. Additionally, the first 8GW ofprojects will qualify for benefits such as carbon credits.23

Key developments

AnalysisOnshore wind has also lagged behind solar generation. From 2014 to 2021,
wind capacity in India nearly doubled to 38.5GW, far behind the breakneck
growth of solar during the same period, which grew more than tenfold to
39.2GW.24 Given that the market boasts a 12GW manufacturing base in thewind power sector, several lawmakers have called for its acceleration to beprioritized.25

Regional focus

Currently, India’s renewable energy generation capacity is 160GW, but it has
an ambitious target of 500GW by 2030.26 Consequently, it is looking to new
emerging technologies, such as green hydrogen, to help it reach its goal.

Insight

The state government of Karnataka and Indian solar developer ACME Group
have promised to spend INR520b (US$6.7b) on a plant that will produce
1.2 million tonnes of green hydrogen and green ammonia per year by 2027.27

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

09Key developments

11
No change

RECAI ranking

Denmark: Renewables soaring despite challenging
conditions on the horizon
2022 saw a record first six months for green energy in Denmark, with theshare of renewables for power consumption rising to a new high of 53.3%,
sparked by significant growth in wind and solar generation. Total production
from green energy reached 10.9TWh, rising from 9.7TWh a year ago.28
Despite the record growth, there could be difficult times ahead for the sector,
with developers required to pay for grid connections from January 2023.
Previously, they were only required to pay a small down payment when
applying for a connection. Now, fees will range from €20,000 to €40,000(US$19,700 to US$39,500) per megawatt, with discounts for larger
projects.29
A new land tax is also planned, which will favor larger projects too. Given that
solar projects need more land than wind, this will pose additional obstacles forsolar developers and could spark more hybrid schemes with wind power in the
future.
Denmark has ambitious plans to be a net exporter of green energy by 2030.
It is seeking to increase total generation from solar and onshore wind fourfold
by 2030, and will bring into force procedures to reduce administrative delays.
The government is also aiming for tenders for an additional 1GW to 4GW of
offshore wind before the end of 2030.30

14
Down 1RECAI ranking

Brazil: Biomass beats wind and solar in tenders

Foreword

Brazil has retained its position as the leading market in Latin America forinvestment in renewable energy sources in the RECAI rankings. However, a weakeconomy is slowing the pace of uptake of renewable energy sources and has
resulted in low power demand.

RECAI 60

Brazil’s A-4 power tender in May saw a small tender size, with renewable energy
supply contracts awarded for projects with a combined capacity of 947.9MW. Total
investment is estimated at BRLR$7.9b (US$1.5b).

PPA Index

For the first time, biomass surpassed wind and solar, with 407MW of capacity
awarded. Hydropower was allocated 189.7MW, wind 183.1MW and solar
166.1MW. Biomass projects sold power at BRL314.93/MWh (US$60.9/MWh),hydro earned a price of BRL281.65/MWh (US$54.5/MWh), while wind and solar
sold power at BRL178.84/MWh (US$34.6/MWh). The average sale price of
BRL268.16/MWh (US$51.8/MWh) marks a 50% increase on last year’s auction.
The biggest rise was for biomass projects, with the price up more than 60%.31 The
higher prices were largely attributed to national and global inflation.

Key developments

Analysis

For wind and solar, the contracts awarded mark a major drop from last year, when
581MW of new wind capacity and 518MW of solar were awarded. In May’s auction,
solar and wind technologies were placed together for the first time, as the cost ofsolar power had dropped significantly to make power delivery costs comparable
for the two. The new wind and solar projects are required to come online by the
beginning of 2026, with the start of 15-year power purchase agreements.

Regional focus

Insight

Brazil has also taken key steps forward in developing a green hydrogen economy.
In August, it established a green hydrogen secretariat to accelerate growth.32
Meanwhile, the state government of Ceará, in northeastern Brazil, has signed
two memoranda of understanding (MoUs) for the development of a new greenhydrogen hub at the Port of Pecém. In addition to the MoUs with Nexway andEnergy Vault, the state government says it is preparing to sign MoUs with fourother companies for the Pecém complex.33

Data andmethadology

Ports in Ceará are the closest to Europe within South America and, consequently,
the green hydrogen hub will be structured around exports.

Renewable Energy Country Attractiveness Index 60

Contacts

10Key developments

16
Up 5

RECAI ranking

Greece: Favorable legislation will accelerate renewableenergy expansion
Greek lawmakers have given the green light to developers to accelerate
renewables by passing legislation in June to expedite licensing for energy
projects.
Currently, the average time for licensing green projects is five years, but
the new legislation is expected to shorten that to 14 months, with firm
deadlines established, and penalties and fines for delaying the permitting
process. The new law also calls for the development of at least 3.5GW ofenergy storage by 2030 and increased grid connections for renewables.34
The measures are expected to play a key role in helping the market reachits 2030 target of 25GW of non-hydropower renewable energy capacity.35
In addition, in July Greece kickstarted its offshore wind program by passing
its first offshore wind law. It is now identifying offshore wind zones andauction criteria, and has set a target under the market’s National Energy
and Climate Plan (NECP) to add at least 2GW of offshore wind by 2030,
most of which will be from floating offshore wind farms.36 Transmission
system operators are now in the process of identifying connection
possibilities for future deployments.
In September, Greece awarded 538.4MW of capacity in its most recent
renewables tender, with PV solar given 372MW for 14 farms at an average
price of €47.98 (US$48.83)/MWh. Wind power projects secured 166MW at
an average price of €57.66/MWh (US$56.9/MWh).37

19
Up 1

RECAI ranking

Morocco: Favorable legislation will accelerate renewableenergy expansion

Foreword

Morocco’s renewable energy supplies soared by almost 10% last year — rising from
7.3TWh in 2020 to 7.9TWh in 2021 — as two solar power plants and a wind farmcame online. Renewables now account for more than 19% of the market’s energy,
up from 18.5% in 2020.39

RECAI 60

Installed renewable energy capacity surpassed 5GW, representing major growthover the past two decades given that capacity was at 1.2GW in 2000.40 The
government is seeking to more than double capacity by 2030 to reach 12GW,
which would make up more than half of Morocco’s energy capacity.

PPA Index

Currently, Morocco imports more than 90%41 of its energy needs. The market isalso heavily reliant on coal-fired power plants, which supply more than two-thirdsof overall output. With high costs of coal because of sanctions on coal imports
from Russia, pressure has mounted on Morocco to accelerate its green energy
ambitions. As it seeks to ramp up its renewable energy generation, Morocco
expects to meet its targets with the aid of technological developments in energy
storage, green hydrogen and lower renewable energy costs.

Key developments

Analysis

Morocco has been ranked by the International Renewable Energy Agency in the
top five globally for potential to produce competitive green hydrogen.42 Last year,
its National Hydrogen Commission unveiled a roadmap on green hydrogen andlaunched the Green H2 cluster, a five-hectare research and development pilot
platform, with a focus on producing green ammonia. This is expected to begin inlate 2023 and produce four tonnes of green ammonia daily.43

Regional focus

Insight

Meanwhile, Greece continues to attract large investor interest, signing its
first bilateral power purchase agreement with Axpo Group for a 100MW
solar power project. The market also announced in July that private equity
fund the Macquarie Green Investment Group’s Cero Generation will seek to
add 1GW of renewable energy projects to its portfolio by 2025, and only
for corporate PPAs.38

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

11Analysis

Decentralized energy markets: the future of distributed
energy and the implications for energy resilience

Foreword

As the world moves toward decentralized distributed energy systems, further
steps will need to be taken to boost the resilience of energy infrastructure.

In brief• The world is shifting awayfrom centralized grid networks
toward decentralized distributed
energy systems.
• Centralized grid networks aremost prevalent in developed
economies, while developing
economies have a different setof circumstances to consider.
• Regulatory integration isincreasing as more markets
coordinate their efforts topursue energy security on theinternational level.

A global shift away from centralized energy
generation toward decentralized distributed energy
systems is underway. Decentralized energy takes
various forms, including microgrids, small-scale
renewables, and combined heat and power (CHP)
facilities, as well as distributed energy storage
and controllable loads. In contrast to conventional
power-generation facilities connected to acentralized grid — with power often transmitted overlong distances — decentralized energy is typically
distributed locally.
There are a number of drivers behinddecentralization, including the push to decarbonize
and growing concerns over energy security. Indeed,
these shifts have accelerated this year against the
backdrop of the war in Ukraine, which has boosted
the case for decentralization while dramatically
improving the cost-effectiveness of renewables as
wholesale power prices have risen.
DERs are being deployed rapidly, and this exposes
network operators to multiple new challenges.

RECAI 60

These include cyber threats, given the higher
number of attack points available as DERs
proliferate. Forecasting and optimizing DERs in realtime is also made more difficult, as they generate
power by following the availability of natural
resources rather than consumer demand.
Additionally, unless properly managed, DERs cancause unstable network conditions, resulting indamage to grid assets, overuse and shortened
useful asset lives. They can contribute to voltage
instability and capacity constraints when low
demand combines with high DER output. If theycause sudden spikes and drops in power supply, agrid’s voltage and frequency level can be disrupted,
leading to poorer power quality. And many DERs are
not visible to system operators, which makes system
planning difficult because the true load being met is
unknown.
Lastly, network operators will come under pressure
to find faster and cheaper ways to connect DERs or
risk derailing the speed of the energy transition.

PPA Index

Key developments
Stephen Auton-Smith
Managing Director
EY Infrastructure Advisors, LLC

Analysis

Contributors
Andrew Horstead
EY Global Power & Utilities Lead Analyst
Jeff Miller
EY Americas Power & Utilities Strategy Leader

Regional focus

Paul Micallef
EY Global Digital Grid Leader
Thomas J. Flaherty, III
EY-Parthenon Senior Advisor,
Strategy and Transactions, Ernst & Young LLP

Insight

Data andmethadology“

Contacts

The challenge for grid operators is having the visibility and some
control over the resources to stabilize the grid when necessary.
Paul DeCotis
Senior Partner, Energy and Utilities, West Monroe
Renewable Energy Country Attractiveness Index 60

12Analysis

DER growth drivers
Drivers

Description

Falling technology costs

With technological advances, there has been a consistentdecline in technology prices and related hardware costs.

Corporate
sustainability

Many companies are setting environmental, social andgovernance goals to improve sustainability by increasing
the use of renewable energy.

Increased
electricity
demandAs more sectors are electrified, such as transport, thedemand for electricity will increase, which will drive
growth of batteries.

Policy/regulatory
requirements

Close to 138 countries have committed to carbon
neutrality by 2070 at the latest, including the US, India
and China, which are leading carbon emitters.

Decarbonization

Renewable generation such as wind and solar does notrelease harmful emissions and reduces the need forelectricity generation from fossil fuels.

Grid resiliency

Energy variability can be balanced using flexible
automated grid operations, which simplifies balancing ofenergy supply and demand.

Off-grid solutions

DERs have the capability to provide electricity access torural and remote areas. They facilitate backup energy
solutions for critical operation.

Source: EY Knowledge analysis on news articles.
Note: the above projections can differ as the current geopolitical situation is unfolding.

Impact on DER growth“The interconnection of DERs on the grid is increasing, as are the types of resource being added
and the locations where they are added. The challenge for grid operators is having the visibility
and some control over the resources to stabilize the grid when necessary,” says Paul DeCotis,
Senior Partner, Energy and Utilities, at West Monroe. “The benefits include potentially lower
overall system energy costs, greater grid flexibility and the ability to ramp resources up anddown as necessary, to improve reliability and enhance resiliency.”

Foreword

RECAI 60

The costs of these DERs have declined, and regulatory support has increased, as governments
have focused more on decarbonization and energy security. These resources offer significant
potential for increased grid flexibility and complement the integration of renewables. They help
reduce demand for costly, large-scale utility infrastructure — such as high-voltage transmission
lines — and lower the number of line losses experienced because of transmission of power acrossdistances. Decentralization is therefore considered to give rise to greater energy resilience —that is, the ability to adapt to changing conditions and rapidly recover from disruptions.

PPA Index

While decentralization is a global trend, there are regional differences in how it is being
implemented. The centralized grid network is most prevalent in developed economies, while
there is more exploration and implementation of alternative means of accessing electricity indeveloping economies, given historical electricity access deficits. This has led to off-grid solar
solutions being deployed in sub-Saharan Africa, for example. In Brazil, meanwhile, regulators
started encouraging consumers to install small generation units in 2012, and a regulatory
framework for distributed mini-generation and micro-generation was approved in 2021. China isalso a global leader in DER deployment, and this is set to grow further still as the market pursues
carbon neutrality by 2060.

Analysis

Key developments

Regional focus

More markets are also coordinating efforts to pursue energy security. However, major grid
failures in parts of the US, extreme weather events and spiking energy prices all serve as
reminders of the vulnerabilities that remain. Given this heightened concern, grid flexibility
and energy security have become much more of a priority across large parts of the world. As
more regions consider how to address these issues, they will need to take into account various
regulatory and practical factors.

Insight

Data andmethadology

Spurs to greater investment
In the US, events such as the drought and heatwave in California in 2022, which put severe
strain on the state’s grid, have brought into sharp focus the need for grid decentralization andresilience. California has brought in legislation to expedite the development of battery storage,
including financial support and mandates for the development of new storage capacity.44 Even
more significant were the extreme weather events of 2021, with the winter storm in Texas andHurricane Ida making landfall in Louisiana later that year, both resulting in local grid failures.

Renewable Energy Country Attractiveness Index 60

Contacts

13

Analysis

Why is it important to scale demand-side flexibility services?
In New Orleans, Louisiana, the desire to avoid future grid failures is spurringcertain industries, municipal entities and other market participants to step up
investment in decentralized energy systems. As power prices rise, additional
grid flexibility also has the potential to offer some economic relief.
Extreme weather events and energy shortages are also putting centralized grids
under pressure elsewhere in the world, bolstering the case for decentralization.
Heatwaves have had a significant impact in South Asia this year, resulting indaily blackouts, while South Africa — which has long struggled with power
shortages after years of underinvestment and mismanagement — has been hit
by unprecedented levels of power outages in 2022. Isolated incidents, such as
the accident at a power plant in Taiwan in March45 that led to widespread power
failures across major cities, are also highlighting grid vulnerabilities.
Against the backdrop of these events and pressures on grids globally, flexibility— that is, the ability of a power system to maintain stability in the face ofswings in supply or demand — and enhanced reliability of power supply become
increasingly important. Traditionally, flexibility was provided in power systems
almost entirely by controlling the supply side at major power stations. As theshare of intermittent renewable generation in the energy system increases,
additional flexibility is required to maintain system reliability.
Customer-connected flexibility can help alleviate transmission and distribution
constraints, and contribute to releasing additional capacity on both thetransmission and distribution networks. Excess power generated by selfsustaining distributed systems can be stored and then used when centralized
grids are hit by outages.
However, given the challenges that a higher penetration of DERs canpresent, network operators are also under increased pressure to ensure that
decentralization improves flexibility, rather than detracts from it.

There are multiple pilots running across Europe to demonstrate flexibility services. However, it is of paramountimportance that we bring those pilots to a business-as-usual state in order to deliver a resilient power grid.

Foreword• Catering to higher penetration of renewables

RECAI 60

Carbon-intensive electricity generation is being replaced by renewables. By 2030,1 the EU and the UK will installaround 510GW of new renewables, 70% of which will be connected at distribution grid level. Scaling flexibility
solutions are therefore needed to cancel the effects of uncertainty and variability in a system with high levels of
renewables.

PPA Index• Reducing the cost to achieve net zero
Scaling flexibility services will help achieve net zero with significant cost savings. According to an analysis by the
Carbon Trust and the Imperial College London, a fully flexible energy system in Great Britain has the potential todeliver material net savings of between2 £9.6b and £16.7b per annum in 2050 compared across all scenarios.

Key developments• Cater to expanding flexible electricity demand

AnalysisDue to the electrification of heat, transport and industry global electricity demand is projected to increase from
23,230TWh in 2020 to ~60,000TWh in 2050, an average increase of3 3.2% per year. In addition, self-generation ofelectricity makes managing the power system and maintaining security of supply increasingly difficult. Hence, it isimportant to scale flexibility services to manage intermittent generation and peak demand.

Regional focus• Maintain system resiliency
Scaling flexibility services will enable the development of a secure net-zero energy system that can operate costeffectively in diverse situations. Demand response and thermal storage reduce electricity demand peaks, whilebattery storage and interconnectors help to meet remaining demand, reducing requirements for backup generation.
According to the IEA4, to meet four times the amount of hour-to-hour flexibility needs, batteries and demand
response should be used more extensively.

Insight

Data andmethadology

Source: 1 Why do electric systems need flexibility? — Eurelectric — Powering People, 2 Key findings — Flexibility in Great Britain — The Carbon
Trust, 3 Net Zero by 2050 — A Roadmap for the Global Energy Sector (windows.net), 4 Net Zero by 2050 — A Roadmap for the Global Energy
Sector (windows.net)

Contacts

Renewable Energy Country Attractiveness Index 60

14Analysis

In Europe, attention has turned to energy resilience, given thescale of upheaval in energy markets and the speed with which thecontinent is aiming to change its power supply sources. The war in
Ukraine, and Russia’s response to sanctions, and the cessation ofgas supplies have highlighted the risks associated with over-relianceon imports — in this case, of natural gas in particular — and shone a
spotlight on other global markets where overreliance could becomea challenge.
Concerns have been raised, for example, about the fact that China
dominates the manufacturing of solar panels, accounting for morethan 80% across all key solar panel manufacturing stages.46 Indeed,by some estimates, it could account for between 70% and 98% of
the world’s production capacity of the silicon-based raw materialand components in solar panels.47 This could become a challenge
for markets such as the US, which has seen its relations with China
deteriorate.
The US is now working to boost its domestic production of solar
panels and has approximately 1GW of PV module production
capacity, according to Wood Mackenzie, out of a global capacity
approaching 500GW as of 2021, according to the International
Energy Agency. In an effort to become more competitive, the US
extended tariffs on solar products containing crystalline silicon from
China in February 2022. Through the Inflation Reduction Act, it has
also brought in tax incentives for the development of a more robust
solar industry.

Foreword

Decentralization also stands
to receive a boost in the US,
thanks to the recent passingof the Inflation Reduction Act,
which, among other measures,
expands tax incentives
available for renewable assets.

RECAI 60

PPA Index

Key developments

Analysis

Regional focus

In the longer term, decarbonization appears set to be a key driver ofgrid decentralization and modernization, especially as more entities
adopt net-zero emissions targets. With that in mind, DERs are
becoming increasingly popular, as they help accelerate the uptake
and integration of renewables into the energy mix.

Insight

Data andmethadology

The war in Ukraine, and Russia’s
response to sanctions has shone
a spotlight on other global
markets where overreliancecould become a challenge.

Contacts

Renewable Energy Country Attractiveness Index 60

15Analysis

Broadening the field for more players and approaches
As energy systems become decentralized, opportunities will becreated for different types of players to participate beyond utilities
alone. At the same time, DERs need to be enabled to participate
in established markets — such as wholesale electricity, ancillary
service or capacity markets — to be exposed to market prices.48
In France, grid-connected storage can deliver cloud storage,
ancillary and islanding services, as well as optimization of power. In
Germany, it gives the option for rooftop PV systems to be included
in tenders.

While there are multiple applications for DER technologies
operating at different levels and at varying scale, smaller players
will need to proceed with caution if they are to avoid becoming
subject to public utility regulations. In the US, for example, mostutility regulations allow for customers to have behind-the-meter
power-generating equipment. However, if some entities aresupplying power, heating or cooling to other organizations, as wellas meeting their own needs, this could fall within the scope of theregulations.

Around the world, the falling cost of solar generation is helping
DERs to proliferate. In Africa, for example, Egypt, South Africa,
Kenya, Namibia and Ghana are among the leaders when it comesto adding solar capacity.49 More than 70 markets now have net
metering policies in place to support distributed solar power. These
include Spain, where net metering systems above 100kW in size
are allowed to share surplus power with local consumers or inject it
into the grid.

A further challenge in the US is the fact that much of theinfrastructure involved in energy systems is regulated at state level,
and approaches to these regulations can vary considerably. Given
the relatively limited tenure of politicians and regulators, taking amore long-term approach to challenges such as decentralization
is a struggle, even as long-term emissions and decarbonization
targets are adopted. Utilities and other players are piloting newtechnology, but because there is no firm or unified view of what
the future may look like, there is a lack of coordination that could
prove detrimental to efforts to roll out DERs.

Some Caribbean markets have adopted hybrid net metering andfeed-in policies, allowing residential consumers to offset power,
while commercial consumers are required to feed 100% of thepower they generate into the grid. In Turkey, legislation permitting
consumers to install rooftop PVs without approval and sell excess
power to distributors has been in place since 2019.
Battery storage regulations are also being rolled out or updated
in various markets where regulators and system operators areseeking greater flexibility. Germany leads the European residential
market, with up to 150,000 new battery storage systems installed
in 2021, while Australia implemented changes in wholesale market
trading rules for storage projects at the end of 2021.

On the other hand, CHP and trigeneration — or combined cooling,heating and power (CCHP) — are emerging in the US as carbonefficient and cost-effective options for decentralization. In manycases, there is demand for cooling rather than heating, and
CCHP can provide a high volume of cooling capacity for majorbuildings or building clusters. The US also benefits from legacy
infrastructure, built in the 1970s and 1980s, that is now being
modernized and revitalized as decentralization is increasingly
pursued.

Decentralization also stands to receive a boost in the US, thanks
to the recent passing of the Inflation Reduction Act,50 which,among other measures, expands tax incentives available forrenewable assets. While the legislation is still being scrutinized andunderstood, it paves the way for rolling out the ownership of such
assets to a broader base of players.

Foreword

RECAI 60

As the variety of players becoming involved in energy systems
widens, a greater range of sources of capital is also emerging,including private and sovereign capital — and with the new tax
benefits in the US, there is less need for tax equity partners thanthere has been previously.

PPA Index

The rollout of smart grids is a significant development in the pushtoward greater decentralization and energy resilience. Smart grids
allow for the bidirectional flows of electricity and data using twoway communication and control capabilities to optimize the flow ofenergy along a network and enable real-time responses to changes
in demand (see section, “Why the world must get smart about
energy grids”).

Key developments

AnalysisGovernments in markets such as the US are investing in strategic
partnerships pursuing grid modernization, including smart grid
solutions.51

Regional focus

Insight

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

16Analysis

Foreword

Why the world must get smart about energy grids
For decades, developed regions have needed a national grid tomaintain the transmission and distribution of their electricity.
This was often an impressive piece of engineering, but notenormously responsive to waves of demand or localized
problems.
As the energy transition intensifies and the world moves toward
a decarbonized, mostly electrified economy, the demand forelectricity from renewable resources will grow exponentially, as
will the challenges faced by electricity network operators.
Renewable energy generation is very different from generation
through traditional, fossil-fueled power plants. It’s production
is dictated by external factors — such as weather conditions —rather than in response to demand, and frequently in locations
distant from the supply. As a result, efficient ways to store andtransmit power are required.
The rapidly growing number of small — even domestic —producers of solar and wind power also creates a need for twoway electricity flow at the household level, which itself requires
monitoring and recording.
With solar panels on every house roof, windmills on every
offshore sandbank, and batteries in every electric vehicle (EV),the generation and storage of energy will look very different
in the future. While such systems and technologies are a vital
part of the move to decarbonize, they make managing thegrid a more complex affair, because flows are less predictable.
The grid must be intelligent enough to bring all these small
generators together and control the flow of power so that itmeets demand.
The technology to achieve this is largely still in development,
but Paul Micallef, EY Global Digital Grid Leader, sees this as themost exciting area in the near future. “Making the grid smart
enough to integrate DERs is the real game changer,” he says.

The future grid will also have to deal with challenges to its
stability. Spikes in production causing network constraints willplace unprecedented strain on the grid’s assets, leading to theirearlier-than-expected degradation. In many regions, aging
infrastructure is also facing growing strain from events fueledby climate change, as demonstrated by the Texas grid blackout.
To meet these challenges, transmission of electricity acrossthe grid must be accompanied by data on generation, storage
and demand, so stakeholders can respond to whatever the
information is telling them. This is the basic concept of a“smart grid,” which is expected to improve reliability, efficiency
and flexibility.
Smart meters are the most familiar form of smart gridtechnology to consumers, allowing them to monitor theirown electricity usage at a more granular level while helping
suppliers work out where and when demand is likely to peak.
According to Micallef, the future grid “will always need somedegree of intelligence, but there will be lots of versions.”
Integration of renewable power generation is the mostobvious aspect of DER management, but storage and supply
management will probably be as important in the long run.
One resource that is likely to grow exponentially is the available
battery capacity of EVs; 130 million EVs are expected to be on
Europe’s roads alone by 2035.52
Micallef says: “As EVs scale, unmanaged charging could put
a big strain on the system without the appropriate smart
technologies and services in place, e.g., smart charging.
But EVs will also have a big role to play in supporting thesystem via vehicle-to-grid technology.”

Perhaps the biggest challenge of smart grids is that they
open up a whole new set of problems for utilities in theform of data security, making them responsible for privacy
issues and vulnerable to cyber attacks.

RECAI 60

The assets and software created to support smart
metering, network automation, EV charging and otherapplications will need to meet a number of criteria,
including connectivity, interoperability (a common set ofstandards will be needed to allow all components to workwith each other) and cybersecurity.

PPA Index

Key developments

Each of these, plus the development of appropriate energy
storage facilities, offers an opportunity for investors to
support decarbonization and the transition to a moreproductive, lower-carbon economy.

Analysis

Regional focus“

As EVs scale, unmanaged charging
could put a big strain on the system
without the appropriate smart
technologies and services in place, e.g.,smart charging. But EVs will also have a
big role to play in supporting the system
via vehicle-to-grid technology.

Insight

Data andmethadology

Contacts

Paul Micallef
EY Global Digital Grid Leader

Renewable Energy Country Attractiveness Index 60

17Analysis

Increasing the resilience of energy
infrastructure

How smart grids work
Smart grids are enabled by newtechnologies that improve two-way
communication, control systems andcomputer processing. These
technologies allow operators toanalyze the grid’s stability, route power
appropriately and identify issues. For
example, using automation to isolate
local faults so they don’t shut down anentire network can greatly improve theefficiency of the network and reduce
the need for costly grid upgrades.
Automated switching can also
allow two-way power flow, so small
generators — such as domestic windor solar power — can be integrated
easily into the grid.

Further steps will need to be taken to boost the resiliencyof energy infrastructure. This includes initiatives such as“weatherization” — weatherproofing to protect infrastructurefrom the elements, particularly extremely hot or cold weather— to ensure that there is enough capacity to accommodate therollout of EVs. Indeed, the impact of electrification will need tobe considered as it advances across numerous decarbonizing
sectors and industries. With intermittency issues, theproliferation of renewables will need to be balanced by moresophisticated energy storage or conventional power generation
capacity.
Given the interconnectedness of these ecosystems,
cybersecurity concerns will increase as smart grids become
more widespread. Addressing these will be a top priority for
those involved in the development of smart grids, and artificial
intelligence and blockchain technology could have a role toplay here. See more insight on cybersecurity on page 24.
“To ensure the grid is more robust and resilient, more
distributed generation, load management and fast-ramping
resources must be added at strategic locations on the grid,”says West Monroe’s DeCotis. “This — combined with greater
visibility and control of the resources in the hands of grid
operators with the ability to ‘island’ sections of the grid tomaintain voltage without service interruptions — is important.
The grid is getting more complex, stronger and more resilientas more resources are added at strategic locations.”

Successful decentralization efforts could depend on a
combination of regulation, economics – with prices ofpower at a certain level for projects to be viable — and, inthe case of renewables, favorable conditions. It will also be
important to strike the right balance in providing sufficient
backup generation to support critical infrastructure.
Technological advances will play a significant role —for example, as storage becomes cheaper and moresophisticated.
Replicating successful efforts in different regions andmarkets could prove challenging, however, given how
much regulatory, economic and weather conditions mayvary. Regions with higher levels of regulatory integration,such as the EU, could have an advantage here. In theUS, on the other hand, decentralization remains a more
complex task because of the disjointed nature of rules,
regulatory bodies and approaches across different states.

Foreword

RECAI 60

PPA Index

Key developments

Analysis

However, between the acceleration of the energy
transition and the heightened energy security concernsthat have emerged in 2022, the task of ensuring a smart
and decentralized grid contributes to flexibility, andresilience has taken on a new urgency. As this urgency
increases globally, market participants will see evergrowing incentives to act.

Regional focus

Insight

Data andmethadology

With intermittency issues, the proliferation of renewables
will need to be balanced by more sophisticated energy
storage or conventional power generation capacity.

Renewable Energy Country Attractiveness Index 60

Contacts

18

Analysis

Foreword

Different approaches to smart grids
In countries without an established national grid, thedevelopment of smart grid technology may enable a newform of infrastructure, where the overall grid is made up of
microgrids — perhaps connecting solar power from individual
houses or villages to provide greater stability for all.
This connectivity will obviously be most useful in areas withinsufficient electrification, but it also has a role to play indeveloping resilience in more developed areas. Where service
is unreliable — perhaps in an isolated rural area, or in a highly
concentrated urban area where surges in demand can leadto brownouts or blackouts — a microgrid that can switch tooperating independently of the wider grid will be a clear
advantage.
In most cases, the development of a smart grid will requiresignificant support from governments, but what that support
will look like will depend on each government’s long-term
strategy.
China, for example, has made domestic energy security
its focus,53 so its policies have tended to look at improving
transmission. This is because its vast quantity of wind and solar
energy is produced miles from demand centers. In addition, theflow of power has historically been interrupted by local peaks indemand, causing frequent outages in overwhelmed distribution
grids. China’s push to build its renewable energy capacity has
also outstripped its grid’s ability to bring those new powersources online, so smart grid facilities that make it easier tobring distributed energy generation to consumers are highly
desirable.

In Canada, the emphasis has been on smart meters, which
help consumers understand their own energy use, thereby
facilitating improved efficiency. Smart meters were installed
in all homes and small businesses in Ontario in 2010, andthe province had moved entirely to “time of use” billing by
2012. This has led to tangible reductions in peak demand ofelectricity consumption by residential consumers.54
Such a move is the first step toward bringing the Internet ofThings into the smart grid. A fridge that tells you the milk isgoing off may be the advertising headline, but a freezer thatknows it can turn itself off for an hour or two during peak times
is a more useful development in the long term.
Developing a smart grid can also support national security.
In the Baltic states, it has been an essential element of the
project to disconnect from the Russian grid55 and connect
to the European Network of Transmission System Operators
for Electricity, a broader power grid covering 39 European
countries. Threats from Russia to cut the Baltic states off after
they implemented EU sanctions against the country becauseof the war in Ukraine have turned this into a task of extreme
urgency.

RECAI 60

US$800b

PPA Index

the average annual global investment
required in electricity networks up
to 2030 to implement smart gridtechnologies and get on track fornet zero by 2050, according to
the International Energy Agency.
Investments in digital assets must
increase eightfold, at more than twice
the speed of total investments intransmission and distribution.

Key developments

Analysis

Regional focus

While the work is mostly focused on synchronizing networks
and building links between the Baltic states and neighboring
countries, the project has also improved the efficiency of
networks — by, for example, installing battery capacity.

Insight

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

19Regional focus

Promising markets punching above their weight
The RECAI uses various criteria to compare the attractiveness of renewables markets, such as magnitudeof development pipeline, that reflect the absolute size of the renewable investment opportunity. Hence,
the index naturally benefits large economies. However, by normalizing with the gross domestic product(GDP) — that is, dividing the “raw” RECAI scores by the log of GDP — we can see which markets are
performing above expectations for their economic size.

MarketNormalized
rankingRECAIrankingMovement vs.
RECAI ranking

Morocco1

19

Greece2Denmark

Foreword

RECAI 60

MarketNormalized
rankingRECAIrankingMovement vs.
RECAI ranking

18

Honduras

21

60

39

16

14

Kazakhstan

22

35

13

3

11

08

Tunisia

23

55

32

Jordan

4

38

34

Italy

24

12

12

Chile

5

17

12

Argentina

25

26

01

Ireland6

13

07

Dominican Republic

26

45

19

Australia

7

6

01

Egypt

27

29

02

Portugal

8

25

17

Kenya

28

46

18

Finland9

22

13

China Mainland

29

2

27

Germany

10

3

07

Brazil30

14

16

Netherlands

11

10

01

United States

31

1

30

United Kingdom

12

4

08

Japan

32

9

23

France13

508Panama

33

53

20

Spain

14

8

06

Austria

34

32

02

India

15

7

08

Bulgaria

35

52

17

Israel16

21

05

Canada36

15

21

Poland17

18

01

Sri Lanka

37

57

20

Sweden18

20

02

Taiwan38

28

10Philippines

19

27

08

Vietnam

39

36

03

Belgium

20

24

04

South Korea

40

23

17

PPA Index

Key developments

Analysis

Arnaud de Giovanni

Regional focus

EY Global Renewables Leader

Contributors
Alexis Gazzo
EY & Associés France Climate Change andSustainability Services Leader
Elanne Almeida
Sustainability Services Partner, EY Servicios
Profesionales de Auditoría y Asesorías SpA.
Pedro Subtil
EY Portugal Energy & Resources Leader,
Ernst & Young S. A.

Insight

Data andmethadology

Contacts

Looking at the data in this way has uncovered some interesting examples of building a carbon-free economy in smaller markets, helping reveal
ambitious plans for the energy transition. We explore three such markets that are creating some attractive alternatives for potential investors.
Renewable Energy Country Attractiveness Index 60

20Regional focus

Morocco

1 19
Normalized
rankingRECAIrankingWith very few fossil fuel resources of its own,
Morocco has historically imported most of its
energy. As the technology for renewable energy
sources has developed, however, so has theNorth African market’s aspiration to generate
its own power. The government wants 52% of
its energy to come from renewable sources by
2030, and 80% by 2050.56

have allowed Morocco to build flexibility into its
power system, with pumped storage hydropowerin the mountains and concentrated solar power
plants (some with thermal storage) in areas withthe most direct sunlight. This is particularly
necessary for a system largely reliant on
renewables, which cannot be switched on and off
in response to demand.

As well as targeting renewable energy to
produce electricity, Morocco is looking at
how to decarbonize other sectors, includingtransport, which will require new fuels such as
green hydrogen, and agriculture, which needs a
combination of solar power, to substitute for diesel
generators, and innovative fertilizers. It hopes thiswill help spark a “green revolution” for Africa.

In 2020, Morocco fell just short of an interim
target of 42%, but it is now on track to meetits 2030 target, with ambitious plans for
installation of more solar and wind power
capacity.

Its geopolitical position is another positive
factor in Morocco’s journey to a low-carbon
economy. Not only does it have two existing
interconnectors with the Spanish power system,
but a third is planned, as well as a fourth with
Portugal. Morocco is also active in supporting
other African markets with their clean energy
transitions, drawing on its own experience.

It is envisaged that all this development of
renewable energy projects will be supported byforeign direct investment, through the institutionalframework of the Moroccan Agency for Sustainable
Energy (Masen). This is a “one-stop shop” forprivate project developers, bringing together
permit processes, land acquisition and financing,and potentially providing a state guarantee for theinvestment.

With 3,000 hours of sunshine a year, Morocco
is well placed for solar power57 — currently its
largest renewable energy source. However,wind is expected to overtake solar in the coming
decade as large projects come online.
Topographical features such as the Atlas
Mountains and access to the Sahara Desert

According to Saïd Mouline, Director General of
the Moroccan Agency for Energy Efficiency:“Morocco has shown that, when you have astrategy and political support, you can reachthe lowest renewable prices in the world, lessthan three [US] cents per kilowatt-hour in thewind sector.” Speaking to the Middle East Policy
Council, he continued: “Morocco has shown thewhole continent how to economically implement
renewable energy policies, and we support ourpartners throughout the continent today in thispursuit.”58

Foreword

RECAI 60

PPA Index

Key developments

Analysis

MASEN tenders attract private developers andinvestors in renewable energy projects througha model of public debt, state guarantees andconcessional loans. New financing models and thediversification of financing sources (e.g., green
bonds) are critical to boosting private investment
and commercial bank loans.

Regional focus

There is no doubt, however, that Morocco has
the natural resources, regulatory support andgovernment commitment to lead Africa’s green
revolution.

Insight

Data andmethadology

Topographical features such as the Atlas
Mountains and access to the Sahara Desert haveallowed Morocco to build flexibility into its powersystem, with pumped storage hydropower in themountains and concentrated solar power plants inareas with the most direct sunlight.

Contacts

Renewable Energy Country Attractiveness Index 60

21Regional focus

Chile

5 17
Normalized
rankingRECAIranking

Another market heavily reliant on fossil fuelimports, but blessed with enormous potential
for renewable power generation, is Chile. The
Atacama Desert, in the north, is one of the best
solar resources in the world, with a theoreticalpotential of 1,800GW, while southerncoasts and mountains have exceptional windresources.59
With this in mind, Chile aims to achieve carbon
neutrality by 2050. By the end of 2020, it was
generating more than half its electricity fromrenewable sources, well on track for its interim
target of 70% by 2030 and impressively beyond
its original 2020 target of 20%. A year later, that
proportion had risen to 54.1%, an accelerationin an already speedy growth rate.60
This progress has been helped by thedevelopment of an innovative auction process
for electricity providers, allowing them to bid
for contracts in four supply blocks: whole-year
24/7; quarterly; daylight; and nighttime. This
is of particular value to solar producers, which
no longer have to buy in power to cover thenighttime supply for which they were previously
contracted.
A note of realism is struck by the Presidentof the Chilean Association for Renewable
Energies, ACERA AG, José Ignacio Escobar,
in a recent newsletter. “They say that ‘if theroad is difficult, it is because you are going in
the right direction’. And difficult it has been,”
he said. “But time has proved us right, andtoday, renewable energy and storage are theonly technologies capable of responding to theinnumerable energy challenges that the world
faces. Sustainable development, balancing the
economic, the social and the environmental,
is the only viable form of coexistence between

human beings with the rest of the species andour environment. A different way of looking at
the world, some would say unconventional, but
so necessary in a world that suffers the blows of
the climatic urgency and the polarization of oursociety.”61
The biggest challenge is getting the power from
where it is produced, mostly in the north andthe south of Chile, to the metropolitan centeraround Santiago. As Chile is 4,300 miles long —but only an average of 175 miles wide — this isa considerable obstacle. A major interconnector
project linked the north and center in 2017,
but the National Electric Coordinator estimatesanother US$3.2b needs to be spent ontransmission projects by 2025.
Chile is taking on a considerable and multifaceted
challenge, including phasing out its 28 coalfired plants by 2040. Added to this, regulationof stand-alone storage systems to make up forthe transmission deficit has taken longer than
expected to be approved. Furthermore, priceallocation mechanisms will have to be resolved
if the market is to resume investing. The pricefluctuations have been caused by, among
other things, the persistent drought, which has
required diesel-based thermal power plants tocontinue to operate, attracting higher costs
to the system. If Chile is to meet its ambitious
targets, integrated planning will be essential,
as will a clear tariff scheme and a long-term
commitment by the government to the energy
transition, to convince investors there is norisk of the government’s support suddenly
dissipating. In line with this, the Chilean Senate
recently approved the Storage Law, which it ishoped will clear up regulatory doubts about thistype of technology.

Chile also views green hydrogen as a key partof its plan for carbon neutrality. It wants tobecome the top exporter of green hydrogen by
2050. The path toward this objective is set out
in the National Green Hydrogen Strategy, but
the mechanisms to implement such a strategy
remain unclear. Deploying projects already inthe pipeline is essential if Chile is to competewith other countries that also aspire to be theworld’s prominent supplier of green hydrogen.
Nevertheless, such ambition is good news for theworld. Decarbonizing Chile’s mining industry —including lithium (used in batteries and energy
storage) and copper (used in EVs, among otherthings) — would be a big step toward a global
transition to a low-carbon economy,62 and isalready under way.

Foreword

RECAI 60

PPA Index

Key developments

Analysis

Regional focus“

Today, renewable energy and storage
are the only technologies capable ofresponding to the innumerable energy
challenges that the world faces.

Insight

Data andmethadology

José Ignacio Escobar
President of the Chilean Association for
Renewable Energies, ACERA AG

Renewable Energy Country Attractiveness Index 60

Contacts

22

Regional focus

Portugal

8 25
Normalized
rankingRECAIranking

Portugal may be geographically on the edge ofEurope, but it is central to showing the value ofgovernment commitment to renewables.
The government strongly believes that asignificant acceleration in the transition fromfossil fuels to renewable energy sources thisdecade is the best way to achieve stable andlower electricity prices and, consequently, amore competitive industry. With a high level ofproduction and consumption of electricity fromrenewable energy sources, Portugal aims to
reduce its dependence on fossil fuel imports.63
While hydro and wind power have been thefocus for the past decade, 2019 marked thetipping point for Portugal and solar PV. Afterseveral years of underinvestment in thistechnology, Portugal’s 2019, 2020 and 2021
solar auctions, which allocated around 2.3GWof new solar power capacity, changed theparadigm in the market completely.
The tenders were a resounding success,with Portugal setting world records for thelowest solar tariff price. In a striking displayof innovation in 2020, eight of the 12 blocks
put up for auction were awarded in the storage
option. This meant Portugal was one of the firstmarkets to develop large-scale hybrid projects
with renewable generation plus storage. In afurther innovation, the 2021 auction allocated263MW of floating PV at seven dams acrossPortugal.

Portugal is currently on track for 80% of its
electricity production to come from renewables
by 2030, according to the Portuguese Energy
Services Regulatory Authority, including solar
projects in the pipeline representing about
12GW.

Foreword

RECAI 60

The energy transition is not just about
electrification. To accelerate decarbonizationof the economy, Portugal also aims to invest in
renewable gases, such as green hydrogen.
The war in Ukraine and subsequent energy
shortages have prompted some markets tolook at increasing energy consumption fromalternative fossil fuel sources. Portugal has
instead simplified procedures and reduced
licensing deadlines for renewable energies
and hydrogen, to continue decarbonizing its
economy and reduce its dependence onenergy from abroad more rapidly.

PPA Index

Key developments

Analysis80%

Regional focus

Insight

the proportion ofelectricity production
from renewables that
Portugal is on track toachieve by 2030
Renewable Energy Country Attractiveness Index 60

Data andmethadology

Contacts

23Insight

Why the renewables sector must meet cybersecurity
challenges head-on

Foreword

The rise of distributed energy networks and smart grids is leading to more complex
cybersecurity challenges as more devices are integrated into energy systems.

In brief• The rise of smart grids anddistributed energy networks ispresenting increasingly complex
cybersecurity challenges, while
legacy technology continues torepresent a different kind of obstacle.
• Several markets are developing
or enhancing their regulatoryenvironments for cybersecurity inan effort to protect critical energy
assets.
• Organizations can take steps
to bolster cybersecurity, but
collaboration is required, internallyand externally; external
collaboration, in particular,presents additional
challenges.

Cybersecurity is increasingly seen as a top priority forenergy infrastructure, especially in the wake of significant
events such as the cyber attack on the US Colonial Pipeline
in 202164 and on Greece’s largest natural gas distributor,
DESFA, in August 2022.65 This focus on cybersecurity
is being amplified by current trends, including
decentralization and the implementation of smart gridtechnologies.
Smart grids allow for the bidirectional flow of power andinformation, and use two-way communication and control
capabilities to respond to changes in demand in real time.
However, this increased connectivity of technologies leaves
smart grids vulnerable to cyber attacks, and this will need
to be addressed as they are rolled out further.
Among the critical infrastructure that could bevulnerable are power plants, electricity grids, pipelines,
communication networks and cloud systems. Newer
technology adds to the challenge, given its greater
connectivity to the Internet of Things (IoT) and theIndustrial Internet of Things (IIoT).
“The cybersecurity issue is not really new, I think it’s
just been overlooked in the past,” says Jalal Bouhdada,
DNV’s Global Cyber Security Lead and founder and CEOof Applied Risk, a specialist industrial cybersecurity
firm acquired by DNV last year. He points to a numberof developments that have contributed to the growing
seriousness and complexity of cybersecurity threats,
including geopolitical tensions, a shortage of relevant skills,
and the convergence of information technology (IT) andoperational technology (OT).
“The other part is the threat actors,” Bouhdada continues.

RECAI 60

“They are very active, very organized and very selective
in terms of their target, and it depends on who you aredealing with.”

PPA Index

Steps are already being taken to address cybersecurity
challenges on a number of fronts, including regulation.
Several markets are establishing, revising or enhancing
their regulations relating to cybersecurity, with a focus on
critical national infrastructure and OT environments.
Significant challenges are presented by the existence oflegacy technology, however. A lot of legacy OT systems arepart of billion-dollar infrastructure investments and cannot
be upgraded, or even changed, without another large 20to 40-year investment.

Key developments

Clinton M. FirthEY Global Cybersecurity Lead, Energy

At the same time, the rise of smart grids and distributed
energy networks is increasing the complexity ofcybersecurity requirements, given the growing numberof devices being integrated into energy systems. In manycases, cybersecurity breaches can go undetected for sometime, or even indefinitely.

Analysis

Regional focus

Insight

Data andmethadology“

Collaboration between public and private sector is very important.
I think the relationship between companies and regulators does notalways make this easy.
Jalal Bouhdada
Global Cyber Security Lead, DNV; and founder and CEO of Applied Risk
Renewable Energy Country Attractiveness Index 60

24

Contacts

Insight

Raising the focus on cybersecurity
The ransomware attack on the Colonial Pipeline, thelargest fuel pipeline in the US, with a capacity of around
2.5 million barrels of refined products per day, illustrated
just how serious a cyber attack on a major piece of energy
infrastructure can be. This incident was pivotal because of theseverity of the resulting outage and the strength of the US
government’s response.
Following the attack, the Colonial Pipeline Company shut
down the pipeline and its IT systems for six days, leading
to supply disruptions and spiking gasoline prices, which hit
US$3 per gallon for the first time in nearly seven years. The
pipeline carries nearly half the fuel consumed on the US
East Coast and, though it was only offline for a few days,
the outage prompted the US government to take action,issuing new regulations to critical pipeline companies.66 The
directives, the first of their kind for the US, have subsequently
been updated after the government assessed how they were
working in practice.67

A lot of the technology used in new
distributed energy systems — forexample, smart meters and solar
controllers — is identical or similar
in configuration and design. While
this makes it easier to standardize
components and bring down theircosts, it can also lead to them being
more exposed.

Other markets are also introducing or upgrading regulations
relating to cybersecurity, and the US response to theColonial Pipeline attack will have been watched closely bygovernments looking at how best to protect their criticalenergy infrastructure.
Even before the US attack, efforts to improve performanceon energy cybersecurity through regulation were under
way elsewhere in the world. However, the Colonial Pipeline
incident and others — including the attack on DESFA in
Greece, which caused a system outage and data exposure,and the distributed denial-of-service attack on Lithuanianstate-owned energy provider Ignitis Group in July 202268— have heightened concerns globally about the impact ofcybercrime.
A number of markets, including Australia and China, areseeking to update their cybersecurity regulations, while, in
September 2022, the European Commission published a
proposal for a European Cyber Resilience Act. If implemented,
this regulation would require any manufacturer of a “productwith digital elements” to meet minimum cybersecurity
requirements if it wants to place that product on the EU
market. The proposal applies to software as well as hardware.
Also in September, a joint alert put out by government
cybersecurity units in the US, the UK, Australia and Canada
warned about advanced persistent threat actors that thepartners believe to be affiliated with the Iranian government’s
Islamic Revolutionary Guard Corps.69 The alert warned
critical infrastructure companies in particular to step up theircybersecurity measures in the face of the threat posed.

Addressing the challenge of aging
technology
Governments and companies seeking to improve theircybersecurity performance are faced with a two-foldchallenge: aging legacy technology that would require billionsof dollars to upgrade, and new technology that is increasinglyconnected via the IoT and IIoT.

Legacy technology cannot be easily upgraded or replaced
without broader, more extensive and costly investment. There
are also risks related to disrupting systems that are runningaround the clock if attempts are made to upgrade them. As ashort-term fix, extra defenses and monitoring can be added.
However, until companies are ready to make the significant
investments required to completely overhaul assets withlegacy technology components, little can be done to bring ameaningful solution to the problem of aging infrastructure.
However, with the increasing focus on cybersecurity,
companies may come under new pressure to invest morethan previously planned in overhauling and upgrading legacy
infrastructure.

Foreword

RECAI 60

PPA Index

Key developments

Six days

Analysis

Regional focus

the length of time the Colonial
Pipeline and its IT systems wereshut down after a cyber attack in
2021, forcing gasoline prices up
to US$3 per gallon

Insight

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

25Insight

Cybersecurity and smart grid
implementation
The cybersecurity challenges presented by new technology
and smart grids are different. Moving a city from traditional
meters to smart meters increases the overall cyber exposure;the broader proliferation of IoT devices increases thepotential attack surface area.
Often, such devices do not have a full operating system andare poorly configured — at times, with hard-coded passwords.
They are generally cheap, and therefore prone to being
forgotten, so they remain in their environment and connectedto the IoT, but not managed. They also tend to be difficult tomonitor because of the challenges of log generation.
Much of the technology used in new distributed energy
systems — for example, smart meters and solar controllers —is identical or similar in configuration and design. While thismakes it easier to standardize components and bring down
their costs, it can also lead to them being more exposed — inparticular, to accelerated lateral movement or attack vectors
by threat actors. For example, a recent test of smart metersthat had the same hard-coded password resulted in one
successful attack, which then led to tens of thousands ofdevices being taken over within seconds.
Given their sheer number, it is difficult to manage IIoT
devices, and it may not be possible to control them — in thecase of home solar or battery technology, for instance. The
situation stands to be further complicated over time by
the proliferation of EVs, especially as the bulk of charging
will happen at the home, creating additional cybersecurity
concerns.

Learning lessons from around the globe
Regions seeking to bolster their cybersecurity defenses canlearn lessons from each other. South Korea, for example,
has more than 30 years’ experience in developing andimplementing cyber resilience for its critical infrastructure.
It is one of the world’s most digitally connected markets,making it vulnerable to cyber attacks.
For geopolitical reasons, South Korea has been frequently
targeted by cyber attacks suspected of originating in North
Korea. In response to these threats, it has developed morecomprehensive cybersecurity policies aimed at supporting
the private and public sectors to prepare for, respond toand recover from cyber threats.70 It has increased funding
available for cybersecurity, invested in more personnel,
enacted regulations to bolster the cybersecurity industry’s
competitiveness, and sought international cooperation.71
The US has also made significant strides, including over the
past year when, among other changes, the government
established the Office of the National Cyber Director.72 This
office will coordinate the overall federal cyber strategy,
including broadening engagement and information sharing
between the private sector and various federal agencies. The
cyber incident disclosure requirements introduced after the
Colonial Pipeline attack also represent a significant change in
US policy, and the platform used for reporting such incidents
continues to evolve.

In addition, the US and South Korea have worked tostrengthen their bilateral cybersecurity cooperation, andthese efforts could serve as a model for other markets tofollow.

Foreword

Organizations should equip themselves with new
cybersecurity skills and engage on the topic at a seniorlevel — with boards, for example. Increasing sector-wide
collaboration on cybersecurity is another important step
they can take.

RECAI 60

Such steps are achievable, according to DNV’s Bouhdada,
but require commitment from senior management
and a willingness to collaborate within and beyond anorganization.

PPA Index“Collaboration between public and private sector is very
important,” he says. “I think the relationship between
companies and regulators does not always make this easy.”

Key developments

Given the vast and rapidly changing cybersecurity
landscape — in which threat actors are increasingly moresophisticated — greater cooperation between countries
could be essential to more effective cybersecurity
strategies. The opportunities for new investment are bothimmense and critical.

Analysis

Regional focus

Insight

Data andmethadology

There are also risks associated with threat actors using the
supply chain to get to their primary target, while the constantevolution of software means new configurations could
introduce fresh vulnerabilities to energy systems.

Contacts

Renewable Energy Country Attractiveness Index 60

26

Data and methodology

RECAI 60 scores
Rank

MarketTechnology-specific scores

Previousrank

Movement on
previous index

Score

Onshorewind

OfffshorewindSolar PV

Solar CSP

Biomass

Geothermal

Hydro

Marine

1

US

1

73.3

58.1

59.3

58.5

46.4

28.9

46.7

40.9

20.5

2

China Mainland

2

72.2

56.2

56.8

61.1

54.9

50.6

24.0

50.6

17.6

3

Germany

4

71.7

55.5

52.1

54.4

32.4

53.3

37.1

41.6

21.1

4

UK

3

70.0

59.4

62.0

47.9

15.6

56.2

36.2

39.8

35.3

5

France

5

69.1

55.4

52.9

53.3

23.5

47.4

38.5

41.7

38.1

6

Australia

6

69.0

54.4

33.6

57.6

48.1

41.5

17.7

26.6

25.2

7

India

7

68.6

51.8

26.4

62.9

34.5

44.5

22.0

45.7

20.1

8

Spain

9

65.8

52.8

36.5

51.5

29.3

39.7

15.6

23.4

23.2

9

Japan

8

65.7

50.8

50.0

49.2

19.6

57.4

45.2

38.4

23.6

10

Netherlands

10

64.9

53.7

47.5

47.4

15.6

52.5

24.5

27.4

23.6

11

Denmark

11

64.0

53.3

50.2

46.3

16.4

43.2

15.5

21.3

21.1

12

Italy

15

63.6

47.7

42.1

50.3

31.4

43.3

32.6

46.0

18.7

13

Ireland

12

63.4

51.6

45.1

46.1

19.6

26.1

17.8

23.4

24.7

14

Brazil

13

62.2

53.7

30.6

52.5

25.0

48.5

13.0

43.7

18.7

15

Canada

16

62.0

54.9

35.6

46.2

19.0

33.3

23.0

45.8

26.1

16

Greece

21

61.5

51.2

30.9

48.2

35.4

44.2

25.1

41.3

14.7

17

Chile

14

61.4

51.5

20.6

48.1

54.7

41.9

45.8

44.9

27.8

18

Poland

19

61.1

48.6

42.0

48.1

13.5

46.9

19.7

36.0

14.3

19

Morocco

20

60.4

46.2

17.9

51.9

50.8

26.9

14.4

34.6

14.4

20

Sweden

17

60.0

48.9

40.6

42.5

15.6

44.6

18.1

32.3

27.1

Renewable Energy Country Attractiveness Index 60

Foreword

RECAI 60

PPA Index

Key developments

Analysis

Regional focus

Insight

Data andmethadology

Contacts

27

Data and methodology

RECAI 60 scoresTechnology-specific scores

Rank

MarketPreviousrank

21

Israel22

Movement on
previous index

Score

Onshorewind

OfffshorewindSolar PV

Solar CSP

Biomass

Geothermal

Hydro

Marine

18

59.7

39.6

15.3

55.4

36.4

29.6

14.8

17.8

16.8

Finland

24

59.4

59.7

43.4

34.6

15.3

50.9

15.3

27.7

15.3

23

South Korea

22

59.3

39.5

41.9

49.2

18.8

49.5

17.2

29.9

33.0

24

Belgium

29

59.1

51.4

36.6

41.7

18.2

45.1

22.6

21.6

20.1

25

Portugal

23

59.0

43.9

23.0

48.6

25.1

40.8

23.0

36.7

23.7

26

Argentina

27

58.1

51.7

23.1

49.1

31.9

41.4

15.6

38.2

19.5

27

Philippines

28

57.9

42.7

21.3

48.8

20.5

44.1

43.5

42.4

20.7

28

Taiwan

31

57.4

42.0

45.9

45.2

18.1

35.7

27.4

32.9

27.2

29

Egypt

26

56.5

46.8

14.9

53.5

47.4

29.7

13.3

23.0

11.5

30

Turkey

25

56.0

47.0

19.1

48.5

23.9

40.0

41.9

43.0

19.7

31

Switzerland

33

55.7

41.3

18.0

43.9

18.5

38.2

22.9

37.5

15.4

32

Austria

37

55.6

45.9

20.8

42.3

13.9

41.4

17.3

39.6

21.0

33

Mexico

32

54.6

41.8

21.2

47.2

24.3

35.9

39.5

34.9

18.9

34

Norway

34

54.6

48.2

34.0

38.0

14.2

33.1

16.7

45.2

32.0

35

Kazakhstan

36

53.8

45.5

13.8

45.1

17.6

30.1

14.5

41.6

13.3

36

Vietnam

30

53.7

43.7

43.5

43.5

16.6

39.4

12.1

45.9

17.7

37

South Africa

35

53.3

46.7

18.0

43.9

46.8

32.3

12.3

19.5

20.4

38

Jordan

39

52.9

40.8

14.3

44.8

30.8

20.6

13.8

16.0

13.8

39

Indonesia

43

52.7

38.6

18.5

46.7

17.3

43.5

56.9

47.3

20.2

40

Thailand

38

51.9

38.3

15.0

44.0

21.2

41.8

16.2

31.3

18.2

Renewable Energy Country Attractiveness Index 60

Foreword

RECAI 60

PPA Index

Key developments

Analysis

Regional focus

Insight

Data andmethadology

Contacts

28

Data and methodology

RECAI methodology

Foreword

The index rankings reflect our assessment of the factors driving
market attractiveness in a world where renewable energy has gone
beyond decarbonization and reliance on subsidies.
We have defined the questions being asked, based on what
we see as global market trends affecting investment anddeployment priorities, and the challenges and success factors
impacting EY clients:• Is there a long-term need for additional or replacement
energy supply? If so, is there a strong case for energy fromrenewable resources in particular?
• Is policy hindering or helping the ability to exploit
renewables opportunities?
• Are essential components in place to ensure projectdelivery, such as long-term contracts, grid infrastructure(including storage) and availability of finance?
• What does the strength of natural resource, track recordand project pipeline reveal about the outlook for particularrenewable technologies?
•E● ven if all other elements are in place, does the macro
stability and investment climate enable or impede the easeof doing business?
These index pillars therefore put emphasis on fundamentals
such as energy imperative, policy stability, project delivery(including capital availability) and diversity of natural
resource — factors that will increasingly become key market
differentiators as markets move toward grid parity, and“artificial” motivations, such as government targets or the
ring-fencing of technologies, become less critical.

RECAI 60

Determining the rankings
Each parameter within the five pillars comprises a seriesof data sets that are converted into a score, from one tofive, and weighted to generate parameter scores. These
are weighted again to produce pillar scores, then an overall
RECAI score and ranking. Weightings are based on the EY
assessment of the relative importance of each data set,parameter and pillar in driving investment and deployment
decisions. Each technology is also allocated a weighting basedon its share of historical and projected investment levels.

PPA Index

Key developments

Analysis

Separate from the main index, EY technology-specificindices rankings reflect a weighted average score acrossthe technology-specific parameters and a combined scorecovering our other macro and energy market parameters.
This is because some markets may be highly attractive for
specific technologies but face other major barriers to entry.

Regional focus

Data sets are based on publicly available or purchased data,
EY analysis or adjustments to third-party data. We are unable
to publicly disclose the underlying data sets or weightings
used to produce the indices.

Insight

If you would like to discuss how EY RECAI analysis could help
your business decisions or transactions, please contact the
RECAI Advisor Lavaanya Rekhi.

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

29

Data and methodology

PPA Index scores
Rank

MarketPrevious rank

1

Spain

2

Movement on
previous index

Normalized
score (0-100)

PPA Index
score

PPA market
maturity

PPA future
market score

PPA policy
score

RECAI
score

1

100.0

25,119,946

83.2

87.8

52.3

65.8

Germany3

97.0

24,378,588

69.5

88.1

55.5

71.7

3

United States

2

96.4

24,216,364

100.0

55.5

59.5

73.3

4

United Kingdom

4

79.9

20,058,321

67.5

78.4

54.1

70.0

5

Australia

5

68.6

17,237,139

78.5

54.4

58.6

69.0

6

France6

62.0

15,578,263

56.5

77.9

51.3

69.1

7

Denmark

10

61.8

15,519,832

57.1

81.8

52.0

64.0

8

India

14

60.6

15,226,923

62.6

50.9

69.6

68.6

9

Netherlands

9

57.4

14,425,791

54.7

75.4

53.9

64.9

10

Sweden7

57.4

14,425,551

62.7

76.9

49.9

60.0

11

Finland8

56.5

14,183,087

66.0

68.1

53.1

59.4

12

Italy

11

52.2

13,125,096

48.9

82.3

51.3

63.6

13

Brazil13

43.0

10,810,439

72.3

54.5

44.1

62.2

14

Norway15

41.8

10,487,768

60.1

63.2

50.6

54.6

15

Poland12

35.2

8,852,111

54.5

46.6

57.1

61.1

16

Portugal

17

28.4

7,131,284

35.8

64.9

52.0

59.0

17

Chile

16

25.2

6,320,713

49.0

39.1

53.7

61.4

18

Egypt

26

23.6

5,920,440

48.7

37.6

57.2

56.5

19

South Africa

20

23.3

5,856,277

56.9

35.4

54.6

53.3

20

Morocco18

22.2

5,585,800

40.7

37.7

60.2

60.4

21

Colombia

2121.2

5,312,874

54.4

40.0

50.5

48.3

22

Belgium

19

20.6

5,183,799

52.7

32.0

52.0

59.1

23

Ireland22

17.0

4,282,555

33.1

36.0

56.7

63.4

24

Japan

28

17.0

4,276,605

25.3

48.5

53.1

65.7

25

Ethiopia25

13.4

3,360,595

37.1

35.2

61.5

41.8

26

Thailand23

13.2

3,315,303

43.8

23.2

63.0

51.9

27

Greece24

11.7

2,932,539

27.0

34.6

50.9

61.5

28

Romania27

10.3

2,593,960

27.7

34.1

53.9

51.1

29

Lithuania

29

8.1

2,034,230

33.4

33.5

51.6

35.3

30

Bulgaria

7.1

1,777,287

23.5

29.0

54.4

47.9

Renewable Energy Country Attractiveness Index 60

Foreword

RECAI 60

PPA Index

Key developments

Analysis

Regional focus

Insight

Data andmethadology

Contacts

30

Data and methodology

PPA market maturity(Sources: Pexapark, DLA Piper and EY analysis)

PPA Index methodology
By analyzing the same 100 markets as in the full RECAI database, the goal is to create a
new ranking that focuses on the attractiveness of renewable power procurement — via
offsite corporate PPAs — rather than the attractiveness of renewable project investment.
The final score for the top 30 markets is calculated from aweighted combination of 12 key parameters, which act as aproxy for corporate PPA potential. The PPA Index focuses onfour pillars (three PPA-specific pillars together with a RECAI
score pillar):

The PPA Index uses a multiplicative formula to prioritize wellrounded markets with strengths in all aspects of corporate
PPA development and integration. For example, this will
mean that markets with zero PPA deals to date will score zero
overall and will not yet be included.

• PPA market maturity — this focuses on activities carriedout within each market in the past decade. It concentrates
on market maturity, looking at past PPA deal frequency andvolume, as well as a quantitative analysis of more recent
PPA deal growth.

However, with strong weighting on forward-looking
parameters, even markets with just a few deals to date could
score highly if significant growth is expected in the corporate
PPA market within the next five years — the horizon of the
RECAI.

• PPA future market — this forward-looking score assesses
the forecast activity of each market. Forecast power
capacity is a key driver of the magnitude of a market, so
this has a significant weighting on the score as well as
the wholesale power price relative to the levelized costof energy (LCOE) or PPA price in each location. Forecast
capacity installations and a weighted project pipeline
score from the RECAI are used. The index has focused onwind and solar PPAs (together weighted at 93%) as these
represent the vast majority of offsite corporate PPAs.

The PPA Index score (which can be very large) has beennormalized into a score from 0 to 100, to create a moremanageable reference value. The leading market will score
100 — but this does not mean that the market is perfect forcorporate PPAs. It means that, relatively speaking, it is themost attractive market for corporate PPAs across the coming
five years.

• PPA policy score — this focuses on the ease of operation ina given market. If a market is to have potential for corporate
PPA growth, supporting government policy must be in placefor efficient and large-scale expansion. This is consideredin the core RECAI, but is also examined here, with a morenuanced focus on PPA supportive policy.
• RECAI score — the overall score yielded by the RECAI isalso factored in as one of the fundamental pillars, because
this provides a strong overview of the existing and potential
strength of a market’s renewable energy landscape.

Data sets are based on publicly available or purchased data,
EY analysis or adjustments to third-party data. We are unable
to publicly disclose the exact data sets or weightings used to
produce the indices.
For more information on the services that EY teams provide
to corporates around renewable energy strategies and PPAs,
please refer to our website: www.ey.com/uk/ppa.

1. Number of PPAs signed in the past five years
2. Total PPA volume in the past five years
3. Number of PPAs signed in the past year
4. Total PPA volume in the past year

Foreword

RECAI 60

PPA future market(Sources: Wood Mackenzie, GlobalData, IRENA, IEA,
Pexapark and EY analysis)
1. Pipeline of projects:
a. Forecast power capacity
b. Forecast installation growthc. Project pipeline
2. Wholesale power pricing:a. Wholesale power price relative to the historic LCOEPPA Index

Key developmentsb. Wholesale power price relative to the PPA priceAnalysis

PPA policy score(Sources: World Bank, GlobalData, IEA and EY analysis)
1.	Ease of doing business index (World Bank)
2. Renewable energy imperative:• Renewable energy percentage of total generation• Percentage of population with access to electricity• Forecast energy consumption growth• CO2 emissions

Regional focus

Insight

RECAI score

Data andmethadology(Source: EY analysis)
1. Macro fundamentals
2. Energy imperative
3. Policy
4. Project delivery
5. Technology

Contacts

Special thanks to Pexapark for providing access to their data.

Renewable Energy Country Attractiveness Index 60

06
31

Data and methodology

Normalized RECAI methodology

Foreword

With the largest global markets tending to top the RECAI, there are many smaller markets whererenewable energy is growing rapidly and becoming highly attractive. By dividing a market’s RECAI scoreby logarithm of GDP to produce a “normalized score,” the new index identifies those smaller renewableenergy markets that perform the best on the core RECAI pillars of energy mix, government support,
project delivery and natural resource. Removing a market’s economic size showcases those that are
efficient in terms of their size and the most attractive for investors. The normalized index also highlights
larger markets that score well in the RECAI but could be doing more to support the green transition.

RECAI 60

PPA Index

Key developments

Analysis

Regional focus

Insight

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

32

Contacts

Foreword

RECAI 60
Arnaud de Giovanni

Ben Warren

Stephen Auton-Smith

Clinton M. FirthEY Global Renewables Leader

RECAI Chief Editor
EY Global Power & Utilities
Corporate Finance Leader

Managing Director
EY Infrastructure
Advisors LLC
stephen.autonsmith@ey.com

EY Global Cybersecurity Lead
Energyclinton.firth@ae.ey.com

arnaud.de.giovanni@fr.ey.com

bwarren@uk.ey.com

PPA Index

Key developments

AnalysisAndrew Horstead

Jeff Miller

Paul Micallef

Thomas J. Flaherty, III

Alexis Gazzo

Elanne Almeida

Pedro Subtil

EY Global Power & Utilities
Lead Analyst

EY Americas Power & Utilities
Strategy Leader

EY Global Digital Grid Leader

ahorstead@uk.ey.com

jeffrey.miller2@parthenon.ey.com

EY-Parthenon Senior Advisor
Strategy and Transactions
Ernst & Young LLP

EY Europe West
Sustainability Co-Leader
EY France Climate Change andSustainability Services Leader
EY & Associés
alexis.gazzo@fr.ey.com

Sustainability Services Partner
EY Servicios Profesionales deAuditoría y Asesorías SpA.
elanne.almeida@cl.ey.com

EY Portugal
Energy & Resources Leader
Ernst & Young S.A.
pedro.subtil@pt.ey.com

pmicallef@uk.ey.com

tom.flaherty@parthenon.ey.com

Regional focus

Insight

Data andmethadology

Phil Dominy

Lavaanya Rekhi

Nathan Docker

Senior RECAI Advisor
Ernst & Young LLP
pdominy@uk.ey.com

RECAI Advisor

EY UK&I Energy and Infrastructure
Corporate Finance Senior Executive

EY UK&I Energy and Infrastructure
Corporate Finance Senior Executive
Ernst & Young LLP

Contacts

Ernst & Young LLP
nathan.docker@uk.ey.com

lrekhi@uk.ey.com
Renewable Energy Country Attractiveness Index 60

33

Citations

References
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EY research, “The role of distributed energy resources in today’s energy grid transition.” Please contact us for moredetails.

20

Federal Register of Legislation, Offshore Electricity Infrastructure Act 2021, Australian Government, www.
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2

Bennett, Andy, “Renewable energy future includes DERs to support decarbonization,” Power, 10 February 2022, www.
powermag.com/renewable-energy-future-includes-ders-to-support-decarbonization

21“Government announces six proposed offshore wind regions,” Energy Source & Distribution, 8 August 2022,
esdnews.com.au/bowen-announces-six-proposed-offshore-wind-regions.

3

Collins, Leigh, “Analysis: Why the US climate bill may be the single most important moment in the history of greenhydrogen,” Recharge, 9 August 2022, www.rechargenews.com/energy-transition/analysis-why-the-us-climate-bill-maybe-the-single-most-important-moment-in-the-history-of-green-hydrogen/2-1-1275143.

22

Petrova, Veselina, “NSW’s Illawarra renewable energy zone draws 17GW of project proposals,” Renewables Now,
29 August 2022, renewablesnow.com/news/nsws-illawarra-renewable-energy-zone-draws-17-gw-of-projectproposals-796212.

4

Inflation Reduction Act of 2022, Congress.gov, www.congress.gov/bill/117th-congress/house-bill/5376/text

23

5

Kessler, Richard, “New US climate law incentives can ramp solar manufacturing capacity to 50GW by 2030: SEIA,”
Recharge, 18 August 2022, www.rechargenews.com/energy-transition/new-us-climate-law-incentives-can-ramp-solarmanufacturing-capacity-to-50gw-by-2030-seia/2-1-1280805.

Lee, Andrew, “Shock move as India hits offshore wind accelerator with gigawatt-scale auctions ‘within months,’”
Recharge, 9 June 2022, www.rechargenews.com/wind/shock-move-as-india-hits-offshore-wind-accelerator-withgigawatt-scale-auctions-within-months/2-1-1235202.

24

Renewable energy statistics 2021, International Renewable Energy Agency, August 2021, www.irena.org/
publications/2021/Aug/Renewable-energy-statistics-2021.

25

Lee, Andrew, “’Over-prioritised solar’: Indian lawmakers say it’s time to give wind its due,” Recharge, 16 August
2022, www.rechargenews.com/energy-transition/over-prioritised-solar-indian-lawmakers-say-its-time-to-givewind-its-due/2-1-1278822.

26

Lee, Andrew, “Shock move as India hits offshore wind accelerator with gigwatt-scale auctions ‘within months,’”
Recharge, 9 June 2022, www.rechargenews.com/wind/shock-move-as-india-hits-offshore-wind-accelerator-withgigawatt-scale-auctions-within-months/2-1-1235202.

6

7

8

“China’s clean energy growth outlook for 2022 keeps getting bigger,” Bloomberg UK, 24 June 2022, www.bloomberg.
com/news/articles/2022-06-24/china-s-clean-energy-growth-outlook-for-2022-keeps-getting-bigger.
Aizhu, Chen and Stanway, David, “China vows steady green energy growth as Europe returns to coal,” Reuters, 27
July 2022, www.reuters.com/business/sustainable-business/china-vows-steady-green-energy-growth-europe-returnscoal-2022-07-27.
Stanway, David, “China says a third of electricity will come from renewables by 2025,” Reuters, 1 June 2022, www.
reuters.com/business/sustainable-business/china-says-third-electricity-will-come-renewables-by-2025-2022-06-01.

9Biogradlija, Arnes, “German government approves historic renewable energy package,” Industry & Energy, 7 April
2022, www.industryandenergy.eu/renewables/german-government-approves-historic-renewable-energy-package.

10

Radowitz, Bernd, “Germany to triple renewables build-out by 2030, with new auction, permitting and legal rules,”Recharge, 7 April 2022, www.rechargenews.com/energy-transition/germany-to-triple-renewables-build-out-by-2030with-new-auction-permitting-and-legal-rules/2-1-1198442.

27

Collins, Leigh, “Indian state government and private developer pledge $6.7bn to build giant green hydrogenproject,” Recharge, www.rechargenews.com/energy-transition/indian-state-government-and-private-developerpledge-6-7bn-to-build-giant-green-hydrogen-project/2-1-1234842.

28

Vilnes, Olav, “Denmark sees record 53.3% share of renewables in H1,” Montel, 9 August 2022, www.
montelnews.com/news/1341151/denmark-sees-record-533-share-of-renewables-in-h1.
Malkin, Brendan, “Infralogic Insight: Danish solar booming amidst challenges,” Inframation, 14 July 2022, www.
inframationnews.com/analysis/11920166/infralogic-insight-danish-solar-booming-amidst-challenges.thtml.

11

Biogradlija, Arnes, “German government approves historic renewable energy package,” Industry & Energy, 7 April
2022, www.industryandenergy.eu/renewables/german-government-approves-historic-renewable-energy-package.

29

12

Ferris, Lee, “Weekly data: The number of countries generating offshore wind power is set to double,” Energy Monitor,
18 April 2022, www.energymonitor.ai/sectors/power/weekly-data-the-number-of-countries-generating-offshore-windpower-is-set-to-double.

30

Bech-Brun, “Danish government to accelerate investments in renewable energy,” 27 April 2022, www.
bechbruun.com/en/news/2022/danish-government-to-accelerate-investments-in-renewable-energy.

31

Spatuzza, Alexandra, “Biomass beats wind and solar in Brazilian power bids for first time in low-energy tender,”Recharge, 31 May 2022, rechargenews.com.

32

Molina, Pilar Sánchez, “Brazil sets up secretariat to develop green hydrogen,” PV Magazine, 9 August 2022,
www.pv-magazine.com/2022/08/09/brazil-sets-up-secretariat-to-develop-green-hydrogen.

13

Lee, Andrew, “Made in Britain’ energy strategy boosts offshore wind target to 50GW by end of decade,” Recharge, 6April 2022, www.rechargenews.com/energy-transition/made-in-britain-energy-strategy-boosts-offshore-wind-target-to50gw-by-end-of-decade/2-1-1198015.

14“ScotWind result – 15GW of new floating wind projects in Scotland,” Vidi Energy, vidi.energy/news/scotwind-result-15gw-of-new-floating-wind-projects-in-scotland.

33

Hames, George, “Brazilian state inks new green hydrogen MoUs,” I J Global, 4 May 2022, www.ijglobal.com/
articles/164047/brazilian-state-inks-new-green-hydrogen-mous.

15

Weitzman, Amelia, “UK signs 99 contracts under renewable CfD scheme,” Inframation, 3 August 2022, www.
inframationnews.com/news/12051701/uk-signs-99-contracts-under-renewable-cfd-scheme.thtml.

34

16

MacLeod, Alexander, “UKIB outlines GBP22bn investment plan,” Inframation, 23 June 2022, www.inframationnews.
com/news/11707336/ukib-outlines-gbp-22bn-investment-plan.thtml.

Buchsbaum, Michael, “Hellenic hope: Rapid solar build-out transforms Greece’s coal-laden valley of tears,”
Europe Beyond Coal, 27 July 2022, beyond-coal.eu/2022/07/27/hellenic-hope-rapid-solar-build-outtransforms-greeces-coal-laden-valley-of-tears.

35“Updated NECP raises RES capacity target to 25GW by 2030,” Energy Press, 6 April 2022, energypress.eu/
updated-necp-raises-res-capacity-target-to-25-gw-by-2030.

36“First Greek offshore wind law seeks2GW by 2030,” Wind Europe, 3 August 2022, windeurope.org/newsroom/
news/first-greek-offshore-wind-law-seeks-2-gw-by-2030.

37

Tsagas, Ilias, “Greece’s renewables tender awards 372MW of PV at average of €47.98/MWh,” PV Magazine, 13
September 2022, www.pv-magazine.com/2022/09/13/greeces-renewables-tender-awards-372-mw-of-pv-ataverage-of-e47-98-mwh.

17

18

19

Puskas, Andras, “UK government to ramp up hydrogen projects,” Inframation, 20 July 2022, www.inframationnews.
com/news/11951336/uk-government-to-ramp-up-hydrogen-projects.thtml.
AP, “Australian Senate passes law for 43% greenhouse gas reduction by 2030,” Business Standard, 8 September 2022,
www.business-standard.com/article/international/australian-senate-passes-law-for-43-greenhouse-gas-reductionby-2030-122090800488_1.html.
Drummond, Shaun, “Australian Government outlines renewables agenda,” Inframation, 29 June 2022, www.
inframationnews.com/news/11754371/australian-government-outlines-renewables-agenda.thtml.

Renewable Energy Country Attractiveness Index 60

Foreword

RECAI 60

PPA Index

Key developments

Analysis

Regional focus

Insight

Data andmethadology

Contacts

34

Citations

References38

Todorovic, Igor, “Cero signs Greece’s first utility-scale corporate PPA for solar power,” Balkan Green Energy News, 14
July 2022, balkangreenenergynews.com/cero-signs-greeces-first-utility-scale-corporate-ppa-for-solar-power.

56

Energy policies beyond IEA countries: Morocco 2019, International Energy Agency, May 2019, www.iea.org/reports/
energy-policies-beyond-iea-countries-morocco-2019.

39

Benazizi, Aya, “Morocco’s share of renewable energies continues to increase,” Morocco World News, 20 July 2022,
www.moroccoworldnews.com/2022/07/350370/moroccos-share-of-renewable-energies-continues-to-increase.

57

Ibid.

58

Middle East Policy Council, Renewable energy in Morocco: interview with Said Mouline, Director General of Moroccan
Agency for Energy Efficiency, mepc.org/commentary/renewable-energy-morocco.

40

Ibid.

41

LB, “Morocco wants to double renewable energy capacity to 12GW by 2030,” African Center for Competitive
Intelligence, 17 May 2022, acci-cavie.org.

59

Bertram, Rebecca, “Good news from Chile,” Energy Transition, 11 May 2021, energytransition.org/2021/05/goodnews-from-chile.

42

Geopolitics of the Energy Transformation: The Hydrogen Factor, International Renewable Energy Agency, January
2022.

60

Renewable energy statistics 2022, International Renewable Energy Agency, July 2022, www.irena.org/
publications/2022/Jul/Renewable-Energy-Statistics-2022.

43

Boutaleb, Hafid, “Morocco to ramp up green hydrogen production,” AL-Monitor, 23 May 2022, www.al-monitor.com/
originals/2022/05/morocco-ramp-green-hydrogen-production.

61

Asociacìón Chilena de Energías Renovables y Almacenamiento, Newsletter May 2022, acera.cl/wp-content/
uploads/2022/06/Newsletter-ACERA-Mayo-2022.pdf.

44Misbrener, Kelsey, “California Energy Commission mandates solar + storage on new commercial buildings,” Solar PowerWorld, 14 December 2021, www.solarpowerworldonline.com/2021/08/california-energy-commission-mandates-solarstorage-new-commercial-buildings.

62

Horwath, Justin and Feliba, David, “Rich in renewable energy, Chile seeks to become global hydrogen powerhouse,”
S&P Global Market Intelligence, 30 August 2021, www.spglobal.com/marketintelligence/en/news-insights/latest-newsheadlines/rich-in-renewable-energy-chile-seeks-to-become-global-hydrogen-powerhouse-66012212.

45

Cheng Ting-Fang and Lauly Li, Taiwan hit by widespread power outages, Nikkei Asia, 3 March 2022, asia.nikkei.com/
Business/Energy/Taiwan-hit-by-widespread-power-outages.

63

46

The world needs more diverse solar panel supply chains to ensure a secure transition to net zero emissions,International Energy Agency, 7 July 2022, www.iea.org/news/the-world-needs-more-diverse-solar-panel-supply-chainsto-ensure-a-secure-transition-to-net-zero-emissions.

López-Dóriga, Elena, Portugal, a strong bet on renewables to reduce its energy dependency, 16 February 2022,
Universidad de Navarra, www.unav.edu/web/global-affairs/portugal-a-strong-bet-on-renewables-to-reduce-its-energydependency.

64

Copley, Michael, “A decade into tariffs, US solar manufacturing is still deep in Asia’s shadow,” S&P Global Market
Intelligence, 23 May 2022, www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/a-decadeinto-tariffs-us-solar-manufacturing-is-still-deep-in-asia-s-shadow-70236202.

Marks, Joseph and Schaffer, Aaron, “One year ago, Colonial Pipeline changed the cyber landscape forever,” The
Washington Post, 6 May 2022, www.washingtonpost.com/politics/2022/05/06/one-year-ago-colonial-pipeline-changedcyber-landscape-forever.

65

Press release: announcement 20 August 2022, DESFA, www.desfa.gr/en/press-center/press-releases/anakoinwsh.

66“DHS announces new cybersecurity requirements for critical pipeline owners and operators,” US Department ofHomeland Security, 27 May 2021, www.dhs.gov/news/2021/05/27/dhs-announces-new-cybersecurity-requirementscritical-pipeline-owners-and-operators.

67

Uberti, David, “TSA eases pipeline cybersecurity rules issued after Colonial hack,” Wall Street Journal, 29 June 2022,
www.wsj.com/articles/tsa-eases-pipeline-cybersecurity-rules-issued-after-colonial-hack-11656511031.

68“Lithuania’s state-owned energy group hit by biggest cyber attack in a decade,” Lithuanian National Radio andTelevision, 11 July 2022, www.lrt.lt/en/news-in-english/19/1736266/lithuania-s-state-owned-energy-group-hit-bybiggest-cyber-attack-in-a-decade.

69“Iranian Islamic Revolutionary Guard Corps-affiliated cyber actors exploiting vulnerabilities for data extortion anddisk encryption for ransom operations,” Joint Cybersecurity Advisory, 14 September 2022, www.cyber.gov.au/sites/
default/files/2022-09/joint_advisory_iranian_islamic_revolutionary_guard_corps-affiliated_cyber_actors_exploiting_vulnerabilities_for_data_extortion_and_disk_encryption_for_ransom_operations.pdf.

47

48

Market integration of distributed energy resources, International Renewable Energy Agency, 2019, www.irena.org/-/
media/Files/IRENA/Agency/Publication/2019/Feb/IRENA_Market_integration_distributed_system_2019.pdf.

49

Obonyo, Raphael, “Push for renewables: how Africa is building a different energy pathway,” Africa Renewal, 6 January
2021, www.un.org/africarenewal/magazine/january-2021/push-renewables-how-africa-building-different-energypathway.

50

Inflation Reduction Act of 2022, Congress.gov, www.congress.gov/bill/117th-congress/house-bill/5376/text

51

Energy.Gov, Smart grid, www.energy.gov/science-innovation/electric-power/smart-grid.

52

Cole, Serge, “As eMobility accelerates, can utilities move EVs into the fast lane?,” EY.com, 8 February 2022, www.
ey.com/en_sy/energy-resources/as-emobility-accelerates-can-utilities-move-evs-into-the-fast-lane.

53

Brunekreeft, Gert et al (eds), Regulatory pathways for smart grid development in China (SpringerLink, 2015), link.
springer.com/book/10.1007/978-3-658-08463-9.

54

Stevens, David, “Report finds that Ontario’s time-of-use pricing shifts electric consumption,” Energy Insider, 28
February 2017, www.airdberlis.com/insights/blogs/energyinsider/post/ei-item/report-finds-that-ontarios-time-of-usepricing-shifts-electricity-consumption.

55

Sytas, Andrius and Strzelecki, Marek, “Europe ready for Baltics emergency switch-off from Russian gas,” Reuters,
1 July 2022, www.reuters.com/business/energy/exclusive-europe-ready-baltics-emergency-switch-off-russiangrid-2022-06-30/.

70

Kim, So Jeung and Bae, Sunha, “Korean policies of cybersecurity and data resilience,” Carnegie Endowment forInternational Peace, 17 August 2021, carnegieendowment.org/2021/08/17/Korean-policies-of-cybersecurity-anddata-resilience-pub-85164.

71

National Cybersecurity Strategy, South Korea Nation Security Office, April 2019, www.itu.int/en/ITU-D/Cybersecurity/
Documents/National_Strategies_Repository/National%20Cybersecurity%20Strategy_South%20Korea.pdf.

72

The White House, Office of the National Cyber Director, www.whitehouse.gov/oncd.

Foreword

RECAI 60

PPA Index

Key developments

Analysis

Regional focus

Insight

Data andmethadology

Contacts

Renewable Energy Country Attractiveness Index 60

35

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