Ireland ranks as the 12th most attractive destination for green investment, according to EY’s latest renewable energy country attractiveness index.
This was up from 13th place in the previous index and comes on the back of what the report described as a “series of positive renewable energy and related infrastructure developments”.
The State’s improved ranking comes on the back of the State’s first offshore wind auction, under the auspices of Offshore Renewable Electricity Support Scheme (ORESS 1), earlier this year, which saw four offshore wind projects with a combined capacity of 3 gigawatts awarded.
The higher ranking was also linked to a new memorandum of understanding with the UK to support offshore renewable energy. British government agency UK Export Finance is said to be eyeing several Irish offshore wind projects.
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In its report, EY noted the positive news for offshore wind in Ireland comes at a time when globally the sector has experienced a difficult 12 months.
“Globally, project costs have risen by 40 per cent since 2019 and the next decade could see cost inflation adding around $280 billion in capital expenditure for the sector,” it said. “Against this backdrop around 80 per cent of the 15 markets with offshore wind targets for 2030 are predicted to miss their stated goals,” the consultancy said.
EY’s index, which is published on a biannual basis, ranks the world’s top 40 markets based “on the attractiveness of their investment in renewable energy and deployment opportunities”.
The top three markets remain unchanged with the US retaining first position on the back of significant solar growth linked to incentives from president Joe Biden’s Inflation Reduction Act.
Germany retained second position having experienced substantial growth in its onshore wind sector. New capacities installed by the end of September surpass the total installed in 2022, the report noted.
“And despite halting national-level subsidies, China continues its upward trajectory in offshore wind, maintaining its overall third position,” it said.
Ireland has also continued to expand its corporate power purchase agreements (CPPA) market, climbing two places to rank 17th, reflecting an increased use of these agreements by major corporates here.
“It is really positive to see Ireland continuing to climb the global ranks in terms of attractiveness for renewable energy. This improvement is a direct result of the policy frameworks that have been put in place to support and incentivise renewable energy, which is being matched by innovation and ambition from energy producers and rapidly escalating demand from corporate users, in particular,” Derarca Dennis, EY Ireland Sustainability Services Lead, said.
“The cumulative and compounding effect of these actions is helping Ireland become a green energy powerhouse, is playing a key role in meeting our climate commitments and will underpin our drive for 80 per cent renewable electricity generation by 2030,” she said.
