The most advanced economies in the world, such as the United States and Europe, are losing advantage in the race towards the green transition, compared to economies like China, which “installed 70% of the world’s capacity when it only represents 17% of the world’s GDP.” . This is what José Manuel Entrecanales, president and CEO of Acciona, warned in a round table during the 14th International Renewable Energy Assembly (IRENA) held in Abu Dhabi. “It is worrying that the United States and Europe will only install 20% of the new renewable capacity in the world in 2023,” he said in this forum.
This imbalance is due, according to Entrecanales, to the fact that “the main element of capital attraction, key to developing renewable energies, is not working as well as it should. We tend to forget that the main element that drives private capital is the risk-reward equation. This needs to be improved to match China’s excellent results in this sector.”
In this sense, José Manuel Entrecanales highlighted that the challenges for the development of renewable energies are for all regions of the world: “Europe faces problems of regulation, transmission, networks and prices. “Africa has scale and funding problems, and Latin America has political problems,” and he added that “the United States has done a very good job with the IRA.”
