The UK has fallen three places to seventh in EY’s Renewable Energy Country Attractiveness Index (RECAI), losing its top spot in offshore wind attractiveness to the US.
The RECAI report indicates a decline in the UK’s overall attractiveness for renewable investments, ranking behind the US, Germany, China, France, Australia and India.
Despite the UK government’s goal of a fivefold increase in national offshore wind capacity by 2030, the fifth allocation round in September attracted no bids for new offshore projects.
Experts suggest addressing economic conditions in auction design and expediting the grid connection process could enhance the country’s renewables appeal.
Ben Warren, EY Renewables Corporate Finance and RECAI Chief Editor, commented: “The UK’s recent challenges in the offshore wind sector echo a broader, global struggle.
“When auctioning contracts for offshore wind generation, governments need to reflect economic conditions in the design of the auction.
“Considering moving away from cost-only auction formats and incorporating non-price factors, such as environmental considerations and job creation, may entice developer interest and a rise in bids.”
