On Nordic countries in renewable energy attractiveness index and companies involved

Ernst & Young Global Limited has released its annual Renewable Energy Country Attractiveness Index (RECAI) where top 40 countries for investing in renewable energy sources are listed. The methodology takes into account market stability measures, energy policy and market demand and technological issues. Despite some environmental and market-size challenges, Nordic countries have amassed high-level expertize in renewable energy segment. Four Nordic countries once again make it into the top 40.

Denmark as the traditional heart of offshore wind investments as well as manufacturing and research led by Vestas Wind Systems (OMX: VWS) is still near the top in attractiveness in investing in power generation in that field, lifting the country to 17th place in overall rankings. Sweden's small climb is explained by the continued political drive to move away from nuclear power and switch those to renewable energy sources. Swedish stock-market listed wind farm developer Eolus Vind (STO: EOLU B) won a big project from Norway within the last year. Finland also makes the top ten as a target in onshore and offshore wind and biomass investments.

Norway's large hydropower capacity is a big player in Nord pool electricity market. Investments to that sector continue to have potential. Stock-market listed Hafslund (OSA:HNA) owns several hydroelectric power plants. The country also has solar power expertize as evidenced by being the home of Renewable Energy Corporation (OSE: REC) but investments in the generation side there seem to bear little fruit.

Some companies listed in the Nordic exchanges providing products and services directly into renewable energy generation include power and automation technology provider ABB (SIX: ABBN, NYSE: ABB, OMX: ABB) and presumably soon delisting Vacon (OMXH: VAC1V). Other firms such as Wärtsilä (OMXH: WRT1V) and Metso (OMXH: MEO1V) provide solutions for intermittent energy needs to supplement the industry as well as serving those industries. Many other engineering firms subcontract into the industry

New entrants from the field, such as solar thermal (heat) generation firm Savo-Solar, are expected to come to stock market in the near future. Nordic consulting firms such as ÅF AB (OMXS: AF B), Tieto (OMXH: TIE1V, OMXS: TIEN), Pöyry (OMXH: POY1V) and Rejlers AB (OMXS: REJL B) have reaped the auxiliary rewards of public sector support to renewable energy developments.

Pulp & paper companies have dabbled into biomass generation and petrol and environmental services companies from the region have been investing in similar ventures with varying levels of success. Wind farms in particular are important for steel companies. Some construction companies such as MT Højgaard (owned by listed Højgaard Holding (CPH: HOEJ B) and Monberg & Thorsen (CPH: MT B) which is market leader in offshore wind turbine foundations are involved in building the structures.