The UK renewables sector has slipped in global rankings for investor attractiveness for the second consecutive quarter, an EY report has found.
The Renewable Energy Country Attractiveness Index, published every three months by the services firm, has degraded the UK from fifth to sixth place, behind the US, China, Germany, Japan and Canada – its lowest level since November 2012.
“The attractiveness of the UK renewables market has decreased dramatically in the eyes of investors and developers,” the report said.
The UK has also dropped two places since the last survey for its onshore wind technology potential.
The result comes in contrast to the country’s leading global position in the offshore wind and marine sectors in terms of investment.
Policy changes including the freezing of the carbon price support and the cut to funding of future onshore wind projects have been the main reasons for the drop, the report suggested.
“It’s clear from this report that the UK is losing out on vital opportunities for investment and jobs because the Government is inflicting serious damage on this country’s onshore wind industry by driving investors away,” said Maria McCaffery, chief executive of trade association Renewable UK.
“As the UK is still the number one destination for investment in offshore wind and marine energy, we’d urge this Government, and indeed its successor, to ensure that policy makers promote these vibrant technologies, whilst keeping the widest range of renewable options, including onshore wind, in the toolkit to maximise economic benefits now and in the future.”