Yinson Annual Report 2021

57 ANNUAL REPORT 2021 The Renewables Division has focused on establishing a platform for growth in the renewables segment including both operating assets and a strong greenfield development pipeline. Our objective is to deliver value across the full lifecycle and value chain, such that the pipeline delivers projects for construction and to enable growth of the operational asset portfolio. The primary focus has been on onshore solar and onshore wind energy assets, though this is not exclusive and other technologies including offshore wind and hydropower are also under evaluation. RENEWABLES UPDATES In line with the Group’s aspirations, we are pleased to report that Yinson’s Renewables Division has achieved some significant milestones since being established in October 2019. We made our first foray into the renewable energy space in March 2020 with the 37.5% acquisition of RSE, an India incorporated company with two operational solar plants in the Bhadla Solar Park, Rajasthan, India. In December 2020, we increased our stake in RSE to 95%, effectively securing controlling stake. The acquisition provided us a strong platform from which to grow Yinson’s renewables business in India – an important growth market for us, with strong fundamentals underpinning the market potential. The acquisition also saw us welcoming the dynamic team in RSE to the Yinson family, bringing strong local connections, experience and manpower to drive renewables projects in India. Our investment into RSE quickly bore fruit. On 2 March 2021, we won a contract to develop and operate a 190MW solar project in the Nokh Solar Park, Rajasthan through our 80% owned subsidiary, RSEK. With this, we secured the second major asset in our renewables portfolio and further consolidated our position in India. The 25-year PPA for this project was signed with NTPC Limited on 30 March 2021. Initial project activities are already underway as per schedule, for the plant to be operational by 2022. The Nokh Solar Park is just 30km away from Bhadla, which creates significant efficiencies in terms of manpower and resources. PROJECT PIPELINE During FYE 2021, we established a strong pipeline of development projects with a global footprint. In building our pipeline, we keep a strong focus on risk diversification across the portfolio while limiting it to selected core markets with potential for scale. Careful market selection is based on growth potential, the regulatory environment, and good market access with potential for strong counterparties. In addition to greenfield development we will continue to participate in solar park auctions in India and will evaluate acquisition candidates where these give opportunity to more quickly establish a presence in a core market. Current contracted revenues from PPAs are approximately USD356 million for the Bhadla plants, and USD370 million for the Nokh Project (commencing from 2022), with these contracts lasting until 2042 and 2047 respectively. We will continue to develop our pipeline to deliver growth and to position renewables to be a major revenue stream for Yinson, providing a source of stable long-term returns to our investors and shareholders. DAVID BRUNT CEO Renewables RENEWABLES RENEWABLES DIVISION’S ACTIVE OPPORTUNITIES CANADA Opportunities being explored Chile, Peru, Columbia Opportunities being explored & finalised UNITED KINGDOM Early stage feasibility ITALY 100MW+ under development; new projects being secured Greece Early stage feasibility India Bhadla Operational project, Nokh under construction + Tender opportunities Australia Opportunities being explored Vietnam Opportunities being explored Philippines Early stage feasibility Malaysia Opportunities being explored Indonesia Early stage feasibility New Zealand Opportunities being explored & finalised