A Word About Wind has launched its Emerging Markets Attractiveness Index report for 2018. The index ranks the top 30 emerging markets that investors should consider when investing in wind in Europe, Africa, Asia and Latin America. The list considers factors including political and economic stability for investors, alongside the growth of electricity demand and potential for wind growth, in order to rank the countries by overall potential.
China tops the list and the ongoing trade war with the US shows no sign of slowing China’s formidable growth. The country saw 19.7GW of new wind farms built last year, the largest capacity globally, and government support led to a record US$ 132.6 billion of renewables investment in 2017. Meanwhile, strong growth forecasts and a shift from feed-in tariffs to competitive auctions look set to draw in more foreign investment.
Looking beyond China, investors aiming to make a move into emerging markets have a growing range of options. For example, offshore wind has started to take off worldwide. New entry Taiwan leapt into fifth place thanks to its welcoming policies, while Turkey and Poland may also offer offshore opportunities for canny investors.
Political and economic uncertainty is often an impediment to development. This is reflected in the positions of several African and Middle Eastern countries, which miss out on the top spots due to the resulting investment instability – despite high scores in overall economic growth. For example, while Ethiopia scores highest on the list for economic growth, it is held back by the World Bank’s unfavourable assessment of the ease of doing business in the country, the lowest of all thirty countries assessed.
The report also contains a corporate merger and agreement databank, commentary on the significance of recent developments in the wind industry, and key deals data from Q3 2018.