Cuts threaten green energy growth

Government cuts are hitting the UK's place as an attractive market for renewable energy, warns E&Y report

A UK review of feed-in tariffs for solar panels has caused uncertainty for green energy investors. Photograph: Alamy for the Guardian

28 February 2011 - Ernst & Young will on Monday release the latest analysis of global renewable energy markets with a warning that government spending cuts are threatening to undermine the industry's continued expansion.

The latest update of the consultancy giant's Renewable Energy Country Attractiveness Indices confirms that overall investment in clean energy hit record levels during 2010, rising 30 per cent year-on-year to $243bn, according to figures from analyst firm Bloomberg Energy Finance.

However, the report, which rates countries based on their renewable energy policies, technologies and infrastructure, found significant country-to-country variations in the level of support available to renewable energy projects.

For example, China again cemented its position as the most attractive market for renewable energy investment with total wind energy capacity soaring 64 per cent year-on-year to 42GW, while the US market continued to expand after the Obama administration extended its high-profile Treasury Grant Program and announced plans for new clean energy targets. {continued}