Since 2003, the Global Renewable Energy Attractiveness Index (RECAI) has been published biannually, ranking the top 40 markets worldwide based on the attractiveness of their renewable energy investment and deployment opportunities. This ranking reflects assessments of market appeal and global market trends. RECAI uses various criteria to compare the attractiveness of renewable energy markets, including the scale of development projects, which directly reflects the absolute magnitude of renewable energy investment opportunities. As a result, this index naturally favors large economies. However, by normalizing for GDP—dividing the raw RECAI score by the logarithm of GDP—it is possible to identify markets that perform beyond what their economic size would suggest. In this way, the normalized index highlights the ambitious plans of smaller economies in energy transition, creating attractive alternatives for potential investors.
Germany
Germany's national-level auction approach has proven highly effective, with the latest solar PV auction receiving a record number of participants. The total capacity of bids received reached 5.5 GW, far exceeding the 1.6 GW auction target, resulting in a significant reduction in the subsidy per kilowatt-hour to just 4.44 to 5.47 cents, much lower than in previous auctions. Solar PV is at the heart of Germany’s renewable energy strategy, and recent reforms to project planning, permitting, and registration processes aim to facilitate solar development further. Wind power is also a key focus of Germany’s Federal Network Agency (BNetzA), which will begin auctioning offshore and onshore wind projects in 2024. The German Wind Energy Association chairman, Bärbel Heidebroek, noted that BNetzA’s decision to auction up to 15 GW of onshore wind power brings welcome certainty to the wind industry. Additionally, the German government has outlined a $17 billion plan to support the transition of gas-fired power plants to hydrogen, with expectations to soon open bids for four gas-fired plants with a combined capacity of up to 10 GW. Despite some concerns about the lack of clarity in details and the perceived insufficiency of capacity targets to effectively accelerate coal power phase-out, the government also announced subsidies for independent hydrogen-fired power generation, with a capacity of up to 500 MW, earmarked for energy research.
India
In the fiscal year 2023-24, India added approximately 26 GW of new installed capacity, with over 70% coming from renewable energy. Overall, renewables now account for 33% of total installed capacity (about 144 GW), while the share of coal and lignite fell below 50% for the first time. India also set a new record with around 41 GW of renewable energy capacity tendered, showcasing innovative approaches to new energy project development, including wind-solar hybrid projects and stable and dispatchable renewables. Renewable energy and storage solutions accounted for approximately 37% of the total tendered capacity. Since August 2022, the cost of battery energy storage systems (BESS) has decreased by about 59%. However, India may still fall short of its renewable energy goals unless it can bridge an expected funding gap exceeding $100 billion. To meet the International Energy Agency's net-zero target by 2030, India will need to ramp up investment in renewable power generation, storage, and transmission capacity. Moreover, India is committed to becoming a global green hydrogen hub, offering over $2 billion in incentives to boost domestic electrolyzer manufacturing and hydrogen production. However, the plan's short timeframe and low subsidies may limit its potential, and domestic policy and pricing uncertainties have so far resulted in gains primarily in export markets.
Denmark
Denmark has launched its largest-ever offshore wind tender, spanning six wind farms with a minimum capacity of 6 GW, including sustainability requirements such as the use of recyclable wind turbine blades. The tender will give the winners the freedom to develop as much offshore wind as possible within the awarded areas, aiming to generate enough power for domestic use, export to neighboring countries, and support green hydrogen production. These projects will operate without state subsidies, with operators paying annual concession fees to the Danish government, which will retain a 20% ownership stake in each wind farm. Denmark has also completed a government procurement of carbon removal credits worth approximately $24 million, the largest-ever such procurement, further cementing its leadership in carbon capture and storage. BioCirc, Bioman ApS, and Carbon Capture signed the procurement agreements through tenders, reflecting strong market interest in capturing and storing carbon from biomass. Denmark, one of the OECD's lowest emission intensity countries, aims to achieve net-zero emissions by 2045. The recently announced Denmark-India alliance will focus on green fuels, including hydrogen, with the shipping giant Maersk playing a key role in promoting innovation, cooperation, and partnerships between Danish and Indian organizations.
Canada
Both Newfoundland and Nova Scotia in Canada are actively advancing offshore wind projects in their coastal regions. The two provinces have signed Memorandums of Understanding (MoUs) with the federal government to co-manage land development, boosting investor confidence. Nova Scotia is developing a regulatory framework for these projects and plans to tender 5 GW of capacity to be installed by 2030. Meanwhile, Newfoundland is advancing several green hydrogen projects worth approximately $660 million. In Alberta, the moratorium on renewable energy projects has been lifted, but a new "agriculture-first" project approval approach designates prime farmland and scenic areas as off-limits. While this change will not affect projects already under construction, the Canadian Renewable Energy Association has warned that it could undermine investor confidence. To incentivize clean energy investment, Canada plans to introduce investment tax credits, modeled on the success of the U.S. Inflation Reduction Act (IRA). This policy will offer tax credits for up to ten years as part of the government's $45 billion commitment. However, unlike the U.S. Act, the Canadian policy does not include production tax credits, which some sources suggest have already attracted investor interest.
Japan
The expansion of offshore wind zones in Japan will create new installation opportunities in economic zones and help the country achieve its goal of 10 GW of offshore wind capacity by 2030. Floating offshore wind is crucial for Japan’s gradual phase-out of coal and liquefied natural gas, and new legislation, once passed, will allow wind farms to expand further offshore. In January 2024, the government issued two offshore wind tenders off the coasts of Aomori and Yamagata prefectures, with developers expected to be selected by December. Additionally, Japan plans to align its electric vehicle and solar panel subsidy rules with those of the European Union, building supply chains based on shared principles and reducing dependence on foreign sources. Both sides are working to harmonize rules in line with their decarbonization plans, ensuring that procurement decisions consider sustainability responsibilities beyond price. The draft agreement opens the door for collaboration with the U.S. and other like-minded countries. Japan’s latest round of solar PV capacity tenders yielded a low average price of 5.11 yen/kWh (approximately $0.034), partly due to a 190 MW PV project with a private power purchase agreement but needing grid connection, which bid at 0 yen/kWh. The tender selected a total of 134 MW of PV projects, ranging in size from 550 kW to 29.9 MW.