China is the most attractive market for investment in renewable energy for the fourth year in a row and growth there is set to continue despite the country’s efforts to trim subsidies, according to a report by UK accountancy firm Ernst & Young. In an annual ranking of the top 40 renewable energy markets worldwide, China was in first place, followed by the United States. Last year, cuts to China’s expensive feed-in tariff regime slowed growth in solar installations. Solar photovoltaic (PV) capacity additions fell to 44.3 gigawatts (GW) from a record 53 GW in 2017. These could fall further and although the government continues to support wind energy through feed-in tariffs, tariff rates are starting to decline. At the same time, the government has proposed setting up an auction system to support renewables as it tries to move away from subsidies. However, despite China’s renewable energy market undergoing a period of transition, growth in the world’s largest clean energy market is set to endure as concerns about pollution, falling technology costs and received interest from international players continue.

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Reuters