Romania descended 22 positions in the last four years in the ranking of the most attractive markets for investment in renewable energy, being the 35th in the world rankings, according to a report made by EY entitled Renewable Energy Country Attractiveness Index (RECAI).

“If in 2011, Romania was ranked 13 worldwide among the most attractive countries for such investments, changes in legislation in the last four years and the lack of predictability caused a sharp decline in Romania’s attractiveness for investors in green energy”, says the report.

“To recover the ground lost by the local market in attracting investors in the energy sector, governments and policy makers should strive to establish transparent and credible energy policy in the long term to achieve a balance between the interests of investors, consumers and state in electricity production from renewable energy sources”, explains Florin Vasilică, Partner and Leader of Transaction Advisory Department, EY Romania, notes Agerpres.

This accuracy in legislation is what caused major changes in the superior region of this index. The report highlights India and Egypt as examples of countries that attract more and more foreign investments, reflecting major investments and important projects resulted from governmental efforts to achieve proposed objectives and from political reforms meant to improve the investment climate.

While countries in Europe send mixed signals, positive political signals from multiple markets are able to generate a positive impact in the coming year. France climbed to seventh place following the progress of its energy policy that generated a much hopped certainty regarding renewable energy ambitions of the country by 2030.

Similarly, additional amendments introduced in legislation regarding competitive bidding in Poland, and Sweden’s commitment to abandon nuclear energy 100% in favor of renewable energy are sending a clear signal to the market as a whole, says EY, writes economica.net.

Meanwhile, in this index UK is down on eighth place, the lowest position so far, in the context of uncertainties related to how “contracts for difference” in this country will be sufficient to stimulate investment in new production facilities, while Italy fell to 16th place after appearance of information related to the decrease in tariffs for solar energy projects.

“The continued volatility in oil prices and geopolitical challenges continue to emphasize the importance of diversifying energy sources as a means of achieving a higher degree of energy security. Renewables become for many countries an increasingly important part of a broad mix of energy sources, giving rise to several attractive markets in our index. Global investment in renewable energy reached 300 billion dollars in 2014, surpassing investment in new technologies for fossil and nuclear fuels”, says Florin Vasilică.

Future energy supply begins by acquiring the appropriate energy mix at an accessible cost. Countries are moving away from a unilateral energy approach, and begin to explore how renewable energy can be integrated, or even to dominate their energy strategies.

“Smaller interests in mature capital markets are forcing investors to seek opportunities across borders and in new areas. Romanian renewable energy industry – and with it energy consumers across the country – can be a major beneficiary of this trend, in case the government will provide investors with long term integrated policies and regulations.

Also, another major trend is emerging globally, characterized by closer collaboration between the public and private sector able to ensure implementation of reform measures adequate to market objectives. The markets that adopt these best practices will reap benefits”, believes Vasilică.