The UK has climbed back into the top 10 in EY’s index of the world’s most attractive renewable energy markets. However, the firm said this was because of other countries dropping down the table, rather than because the UK’s appeal had increased.

In October 2016, the UK’s position on EY’s Renewable Energy Country Attractiveness Index (RECAI) fell to an all-time low of 14th place due to uncertainty caused by Brexit, the dismantling of the government’s Department for Energy and Climate Change (Decc) and the approval of the Hinkley Point C power station.

Ben Warren, EY’s head of energy corporate finance, said: “The UK’s reappearance in the RECAI top 10 is the result of other countries falling away – notably Brazil which cancelled a wind and solar auction in December – rather than any particularly encouraging resurgence.

“The UK continues to underwhelm investors who are waiting to see if future UK policy will support and encourage the renewable energy industry towards a subsidy-free environment, where consumers can benefit from the UK’s excellent natural resources for renewable energy.”

He said that the UK was unlikely to become more attractive until after the Brexit deal was finalised: “Investors are still waiting for clarity around the post-Brexit landscape. Question marks linger around renewable energy targets, subsidies and connections with mainland power markets. Unfortunately, the likelihood of getting complete answers to those questions before the UK exits the EU are slim.”

He added: “The CfD funding allocation is relatively modest and there is continued uncertainty around the outcome of the mechanism. In the absence of a buoyant CfD regime it’s difficult to see how the UK can force its way back among the front runners for renewable energy investment.”

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