Ireland moves up the rankings in global renewable energy development attractiveness

• Ireland rises one place to 12th in latest edition of EY Renewable Energy Country Attractiveness Index
• Ireland also climbs two places in Corporate Power Purchase Agreements rankings 

Dublin, 22 November 2023: Ireland has continued to climb the rankings of the EY Renewable Energy Country Attractiveness Index, rising one place to 12th thanks to a series of positive renewable energy and related infrastructure developments. This positive result for Ireland comes at a time when a challenging global backdrop for the offshore wind sector, in particular, could change the way large-scale energy projects are built and funded in the future.

The EY Renewable Energy Country Attractiveness Index is EY’s biannual flagship global renewables report. Now in its 62nd edition, the index ranks the world’s top 40 markets based on the attractiveness of their investment in renewable energy and deployment opportunities.

Ireland’s overall global ranking of 12th represents an improvement of one position since the last index in June 2023. This is driven by a number of factors, including the successful conclusion of the ORESS 1 offshore wind auction and a new memorandum of understanding with the UK to support offshore renewable energy. Ireland has also continued to expand its Corporate Power Purchase Agreements (CPPA) market, climbing two places to rank 17th in the CPPA Index, reflecting an escalating trend in the use of these agreements in Ireland as major corporates continue to invest in renewable energy.

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% since 2019 and the next decade could see cost inflation adding around US$280 billion in capital expenditure for the sector. Against this backdrop around 80% of the 15 markets with offshore wind targets for 2030 are predicted to miss their stated goals.

Derarca Dennis, EY Ireland Sustainability Services Lead, says: “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. 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% renewable electricity generation by 2030.

Over the past six months, we’ve seen a number of positive initiatives to help accelerate Ireland’s renewable energy attractiveness. The successful conclusion of ORESS 1 saw the provision of in excess of 3,000 MW of clean renewable electricity generating capacity, and the consultation process has now been launched for ORESS 2.

The Renewable Energy Index also highlights a new memorandum of understanding with the UK to support offshore renewable energy. This collaboration alongside a recent joint declaration of intent with France on energy transition co-operation will further enhance our energy security and accelerate deployment of offshore renewables and energy systems. Those positive collaborative initiatives, combined with our ambitious national climate action policy put Ireland in a strong position in terms of this essential energy transition and is particularly relevant as we prepare for COP 28.

Ferga Kane, EY Ireland Strategy and Transactions Partner, added: “The increasing use of Corporate Power Purchase Agreements here in Ireland is a very positive sign and is reflected in our position in the CPPA Index increasing by two places to 17th. Businesses directly committing to renewable energy producers guarantees demand for large scale projects and is crucial at a time when as a nation and globally, we need to be pulling every lever to reach our decarbonisation goals.”

Global market highlights: Top three positions hold steady; Nordic countries and Poland move up

The top three markets in the RECAI remain unchanged. The US retains 1st position, fuelled by significant solar growth as a result of incentives from the Inflation Reduction Act. Germany remains in 2nd position, having experienced substantial growth in its onshore wind sector; new capacities installed by the end of September surpass the total installed in 2022. And despite halting national-level subsidies, China continues its upward trajectory in offshore wind, maintaining its overall 3rd position.

The Nordic countries continue to show their renewable energy intent, with Denmark, Sweden, and Norway climbing two, three, and five places respectively. Poland, moving up two places to 15th, is set to begin construction of its first offshore wind project – the 1.2GW Baltic Power offshore wind farm is expected to come online during 2026 – and has also introduced new legislation to ease the development of onshore wind and solar projects.

To view the full RECAI top 40, the normalized RECAI ranking and the corporate power purchase agreement index, as well as an analysis of the latest renewable energy developments across the world, visit ey.com/recai.

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