Ireland is the 13th most attractive market internationally for renewable energy investment, EY has found.
Ireland placed in the top half among the 40 markets included in EY's biannual Renewable Energy Country Attractiveness Index (RECAI), with the Big Four firm stating that the country has maintained a strong position in the rankings.
The US maintained its position at the top following the introduction in August of the Inflation Reduction Act, which is viewed as a boon to the green hydrogen industry, with tax credits of up to $3 per kg for 10 years making green hydrogen produced in the US the world's cheapest form of hydrogen.
China remains in second, with 2022 expected to be a record year for wind and solar energy production for the county. The China Renewable Energy Engineering Institute think tank has estimated that China will install 156GW of wind and solar power this year, up 25% year-on-year. Germany took third spot following energy legislation reform.
"Energy transition remains at the top of the agenda for government and business, made all the more urgent in light of the significant challenges facing the global energy market," said Anthony Rourke, EY Ireland government and infrastructure advisory director.
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"This is reflected in the remarkable commitments made across global markets to drive uptake of renewable energy sources and reduce reliance on gas imports. Near-term policy interventions are helping reduce risks in the system, but more regulatory support is needed across the board.
"From Ireland’s perspective, what’s positive is that we are spearheading the transition disproportionately compared to our size as a country," he added.
“To reach net zero, the integration of renewables must improve significantly. Distributed energy resources have a vital role to play in allowing a range of green energy sources to be integrated into the grid. Additionally, investment in smart grids will be key to securing energy supplies and getting the world to net zero by 2050.”
Ireland placed 12th on the previous survey, but was surpassed by Italy in the latest edition.
Ireland scored 63.4, compared to the US's leading score of 73.3, driven by higher scores in offshore wind (45.1) and solar panels (46.1), but dragged down by lower scores in concentrated solar power (19.6) and geothermal (17.8).
In the normalised GDP table, Ireland placed sixth, behind Morocco, Greece, Denmark, Jordan and Chile, and ahead of the likes of Germany (10th), the UK (12th), France (13th), Spain (14th) and India (15th), with the US and China hovering around 30th.
EY also highlighted increasingly complex cybersecurity challenges as a result of increased connectivity from the rise of smart grids and distributed energy networks.
"Several markets are developing or enhancing their regulatory environments for cybersecurity to protect critical energy assets," Rourke said.
"Organisations can take steps to bolster cybersecurity, but collaboration is required, between the public and private sector to meet the challenges posed head-on.”
