The UK has slipped down the league table of most attractive countries for renewable energy investment.
The fall of three places to seventh in EY’s Renewable Energy Country Attractiveness Index (RECAI) was partly blamed on the fact no bids for new offshore wind projects were received in the latest CfD round.
EY also said “the diminishing of green policies has left investors with reduced confidence in UK renewables”.
The UK now ranks behind the US, Germany, China, France, Australia and India for investment.
Ben Warren, EY Renewables Corporate Finance and RECAI Chief Editor, commented: “The UK’s recent challenges in the offshore wind sector echo a broader, global struggle. When auctioning contracts for offshore wind generation, governments need to reflect economic conditions in the design of the auction.
“Considering moving away from cost-only auction formats and incorporating non-price factors, such as environmental considerations and job creation, may entice developer interest and a rise in bids.”