Outlook moderate for clean energy this year

Despite record levels in investment in clean energy last year, the outlook for 2012 is much less certain, warn financial consultants Ernst & Young. According to the company’s latest Country Attractiveness Indices report (CAI), China, the US, Germany and India lead the field of 40 countries.

But the UK rose to fifth place from sixth, overtaking Italy, thanks to several large offshore wind projects, including the world’s largest wind farm planned for Caithness in Scotland where £4.5 billion will be invested in a 1500 MW facility. Increases in solar capacity of 762 MW last year and a new £120 million, 53 MW wood-fuelled biomass plant approved in Middlesex also boosted the UK’s standing.

But access to capital, particularly in the countries blighted by the eurozone crisis, is expected to be a major obstacle this year, with Ernst & Young suggesting that the value of deals is likely to fall.