Table 31 Strategies of the development of renewable energy investments [76]

The findings in the 2016 Allianz Climate & Energy Monitor’s report conclude that China and India are competing more effectively as the USA in implementing a robust, nation-wide green policy environment. This trend is anticipated to continue stable in 2017. Strong policies help to achieve the Paris climate objectives of India and China whereas the USA might miss its goals to fulfill the targets of the Paris Agreement if the current government swiftly performs its current announcements. Without attractive and strong nation-wide policies in the USA, renewable powers encounter headwinds (opposite general direction to a course of movement) and will rely on their state actions and imminent cost competitiveness.

The level of renewable energy capacity additions goes up currently in all three countries and has in total moved up to an overtook of investments in fossil-fuel based capacity additions. China is decreasing the use of coal at a sharp angle, firstly, to fight against environmental pollution and secondly due to the steady increase of renewables and a structural transformation steering in the economy of China.

China is quickly decommissioning coal power plants to fight against environmental pollution, and carbon emissions, whereas India may not put a hold onto developing new capacities before 2022.

Large quantities of renewable power investments in the USA are still in progressive because there are a mature market, an excellent general investment climate, and attractive state-level policies.

Renewable power leadership of the USA, India, and China is significant to meet the Paris agreement intentions.

India continued the stable growth in the investment volumes compared to China and the USA. The investment volume fell in the two countries. In China, the drop was 32% (USD 78 billion) because the country was giving priority to integrating the already-existing renewable capacity. In the USA, the decline amounted to 10% (USD 46 billion) because the country was giving priority to pushing installations in 2015 to avoid the potential federal tax credits’ expiration in 2016. The total global newly installed capacity still increased from 2015 to 2016, even though the investment costs per unit declined considerably.

Absolute investment predictions until 2035, however, are only one dimension of the investment demands estimation. The individual energy set-up of all country and current consumption patterns are significant determinants of future demands. For example, the USA has much more substantial power consumption than China and India today, while the consumption is rising in China and India which implicates expanding development needs.

According to pre-estimation results of 2016, India has the most significant demand for renewable investments among the G20 members as an effect of comparatively low per-capita consumption, a fast-growing population and rising energy demands due to economic development. Despite a mature market and high energy consumption, in terms of investment required, the USA is close to India and China, reflecting a powerful vulnerability of its energy infrastructure to climate effects.

China and India are continually developing its policy framework for long-term renewable energy investments and, at a federal level; the outlook for the USA is worsening. The modern renewable policy environment in China and India is more efficient and stable than the one in the USA. There are ambitious climate and renewable power targets and performances in progressive states, such as Texas and California, and still, the attractiveness for renewable power investments in the USA is foreseen to continue scattered in the future because of inadequate and steady federal policies.