57 VALUE CREATION AT YINSON MARKET LANDSCAPE Within the USD1.1 trillion ETI, renewable energy was the largest sector with USD495 billion of investment (up 17%), and electrification of transport was the fastest-growing with an increase of 54% to USD466 billion. The ETI growth is expected to continue; however, development across geographies will be uneven due to a combination of political, economic and social factors, requiring careful navigation. The key challenge for governments is to ensure a coordinated and balanced approach to infrastructure investment that facilitates the rollout of low-carbon technologies, including grid infrastructure, energy storage and market design. A key challenge for the industry is balancing the impact of the exponential growth in national ambitions with the required expansion in capacity of raw materials and related supply chains. To succeed in this landscape, renewable energy companies like YR, which operate in the develop-build-operate space, need to keep a strong focus on the selection of good projects in the right markets, while managing supply chain, policy and regulatory risks. While market and project selection is a core expertise, building strong partnerships with in-country developers and leveraging global supplier networks are equally important contributors to the success of the business. GREEN TECHNOLOGIES The world and ASEAN have set ambitious targets to achieve net zero emissions by 2050, which is essential to limit global warming and avoid the worst impacts of climate change. While expanding the use of renewable energy for power generation is important, a key area that needs to be addressed is emissions from the transportation sector, which account for 37% of all GHGs. Shifting from fossil fuels and expanding the electrification of the transportation sector are crucial to reducing emissions in this area. The targets, however, only form part of the picture. The other, and perhaps more important factor is that the price of EVs is falling rapidly, while the number of available EV models is increasing fast. And it is not just cars. The steady drop in battery prices will also contribute to the electrification of all modes of transportation, including buses, trucks, short-sea shipping and aviation. These factors are making it increasingly likely that nearly all new vehicles will be electric by the year 2030. Globally, EV car sales surpassed 10 million units per year for the first time in 2022, which equates to one in seven cars sold being electric. The deployment of EV charging stations has had to keep pace with demand, with over 1.8 million charging stations now available globally. Fast-charging stations are also being rolled out at a quicker pace compared to slow-charging stations as governments and the EV industry strive to mitigate range anxiety and remove barriers to EV adoption. In Malaysia, we are seeing these upward trends being mirrored, especially given the supportive policies that the government has rolled out, such as the National Energy Policy 2022-2040, the Low-Carbon Mobility Blueprint 2021-2030 and the Malaysia Renewable Energy Roadmap 2021-2035. There are now more than 35,000 hybrid vehicles, 5,000 pure EVs and 10,000 battery & plug-in hybrid vehicles (BEV and PHEV) registered in the country, as well as 900 charging stations as of 2022 – with strong projections going forward. EVs made up almost 12% of car sales in Singapore last year, up from almost 4% in 2021, according to Singapore’s Land Transport Authority (“LTA”). In fact, the LTA expects the upfront cost of buying EVs to match traditional internal combustion engine (“ICE”) vehicles by the mid-2020s. (Source: www.ev-volumes.com) 2019 2021 2018 2016 2020 2017 2015 2019 2021 2018 2016 2020 2017 2015 PUBLICLY AVAILABLE FAST CHARGERS PUBLICLY AVAILABLE SLOW CHARGERS 600 1,500 500 1,250 400 1,000 300 750 200 500 100 0 250 0 Fast charger public stock (‘000) Slow charger public stock (‘000) China Europe United States Other countries
RkJQdWJsaXNoZXIy NDgzMzc=