Trendreport - growth countries renewable energy

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2017 was again a very exciting year for the renewable energies sector. The development of green technology further boosts the expansion of renewable energies in the world. The levelized costs of electricity for renewable energy plants and the costs for battery storages decreased again strongly this year and this trend will continue in the future. According to a report published by the TU Munich and the University of California the cost for lithium ion batteries will further drop to approximately 100 US-Dollar per kilowatt hour by 2019. As a comparison, in the 1990s the cost per kilowatt hour for a lithium ion battery was 10,000 US-Dollar. The decreasing costs will enhance the attractiveness of renewable energies. Especially in countries where recently the energy market has been liberalized the cost in reduction provides new business opportunities for players in the energy sector. The ones who quickly grasp the opportunity and enter successfully the market will be awarded with high incomes and a competitive edge over competitors who enter the market at a later stage. Nevertheless, it is crucial not to underestimate the challenges and the pitfalls in these countries. They may be not obvious at first glance but they can lead the great business opportunity very fast in a losing deal. Therefore, the trend reports of Rödl & Partner provide an important initial overview about the business opportunities and the potential risks of the selected countries. Regarding the country selection, Rödl & Partner chose fast-growing renewable energy markets which are not yet in the focus of public attention and hence, these markets are very interesting for developers, investors and companies from the renewable energies sector.

We prepared trend reports about countries such as Mexico and Iran which are rather known for their fossil fuel reserves than for their ambition with respect to renewable energies. However, these both countries possess excellent conditions for renewable energies and are increasingly taking advantage of it. In this regard Mexico is setting an international example and was also one of the first countries which integrated the expansion of renewable energies into its policy. Furthermore, trend reports about countries such as Brazil and India which have are a tremendously market because of their continental dimensions and huge population are also provided. While India is still relatively at the beginning of a sustainable energy industry which is still highly dependent on coal as energy carrier, approximately 80% of the energy distribution in Brazil comes already from renewable
energy sources. Due to the favorable climate conditions and the aim of the Indian government to solve the insufficient energy supply and the environmental pollution with clean energy, India is pushing forward the expansion of renewable energies, though. A look at Kenya shows that there are also interesting business opportunities in Africa. Owing to the commencing liberalization of the power distribution and the introduction
of feed-in tariffs for power based on renewable energy sources, Kenya is becoming an attractive market and a big player in the field of renewable energies. Within the European Union Sweden sets an example for both developing countries and developed countries. In Sweden innovative and sustainable solutions and technologies are very fast integrated in the energy sector. This is essential in order to accomplish the Swedish goal of relying
100% of the power distribution on renewable energies by 2040.

We hope that our trend reports encourage you for a stronger international engagement. To ensure a successful market entry our renewable energy team is available at all times to accompany your international activities. Moreover, our authors of the trend reports are always available and happy to answer to any specific questions about the trend reports.

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