These 3 countries are safe havens for renewable energy investments

Supportive business environments are highly essential.

BMI Research reported that Asia's renewables industry will expand rapidly over the coming decade, as environmental policy implementation, the increasing cost-competitiveness of renewable energy and advances in green technology encourage renewables deployment across countries in the region. 

As such, Asia will be at the forefront of the global renewable energy expansion, with the greatest amount of installed renewables capacity compared to any other region by the end of our forecast period in 2026.

Here's more from BMI Research:

This promising outlook for Asia's renewables sector is reflected in our Renewables risk/reward index (RRI), RRI, as the Asia region outperforms the global average score across all indicators, notably in terms of rewards.

On the whole, risks are relatively low compared to other regions across the world; however, inefficient grid infrastructure, difficulties accessing finance and underdeveloped renewable energy policies will serve to dampen industry risks scores across a number of markets in the region.

As such, Asia's score for industry risks is only marginally higher than the global average.

Unsurprisingly, the markets that outperform for industry risks are those that have mature renewables markets and offer supportive business environments - for example, New Zealand, Australia, Japan and South Korea. 

Singapore sits at the top of our Asia Renewables RRI regional rankings on account of its stable economic and political outlook, and very low risk business environment. Although the size of the market is notably smaller than many of its regional counterparts, we expect significant growth in the residential solar sector, as the availability and flexibility of financing options for installations is encouraging deployment.

Malaysia's buoyant macroeconomic outlook and projected gradual growth in renewables capacity and generation, particularly wind and solar power, result in relatively strong rewards scores.

Momentum behind Malaysia's renewables sector has been gathering pace, in line with the country's National Renewable Energy Policy and Action Plan and the government's feed-in tariff scheme. This supportive energy policy, alongside relatively good access to finance and well-developed grid infrastructure results in Malaysia's risks profile outperforming the regional average as well.

Turning to Australia, the country scores less well for rewards, as its renewables market is in the midst of a slowdown - stemming from years of wavering government support for the sector.

We highlight that the residential solar, micro-grids and battery storage segments remain investment brightspots, and the country's strong risk profile, attractive legal environment and diverse competitive landscape will ensure that Australia maintains its position at the top end of the table.