84 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 YINSON RENEWABLES STRATEGIES TARGETS PROGRESS AGAINST TARGETS Short to medium-term (1 to 5 years) • Deliver growth both organically and through acquisitions with focus on growth in core markets. • Build a lean and experienced team. • Grow rapidly through local development partners. Long-term (6 to 10 years) • Achieve optimised operations through digitalisation and innovation. • Adopt efficient capital recycling strategies and build strong equity and refinancing partnerships. • Achieve 1 GW operational assets and 3 GW pipeline in three core markets by end-2024. • Achieve turnover of USD200 million by end-2027. • Establish operations in five to seven markets, with a combined development and operating portfolio of 5 to 10 GW, by end-2029. On track for all targets, with pipeline and country targets exceeded. Progress to date indicates that targets are within reach. YINSON RENEWABLES GOALS AND STRATEGIES GOALS • Be a significant standalone business within Yinson – a global IPP. • Participate in the full renewables value chain globally. • Deliver additional value through efficient capital recycling. YEAR IN REVIEW YR continued to grow our pipeline of projects at a good pace in 2022, generally driven by the continued growing global interest in renewable and alternative energy sources. The need for energy security was thrown into even sharper focus as the Russia-Ukraine conflict disrupted energy markets, further spurring demand for increasing growth in the renewables sector. On the flip side, the greater demand for projects, along with escalating commodity prices, also increased the prices of wind turbines, solar panels and associated equipment. This was one of the biggest challenges facing the wind and solar PV industry in the year past. Only our Nokh project in India was directly impacted, as addressed on page 42 of the Financial Review, as the price increases affected only committed construction projects. Development projects were not immediately affected, as price increases are not crystalised until an investment decision is taken and orders committed, at which point Power Purchase Agreement (“PPA”) prices would, in general, have adjusted to reflect actual cost levels. Steady progress in our project pipeline In addition to further strengthening and growing our global pipeline, we focused on maturing secured projects to bring them to final investment decision (“FID”). Our two large onshore wind projects in Brazil are progressing with pre-construction activities, including ongoing tendering for major components and preparation for securing debt finance and PPA. We are concurrently progressing solar PV projects in both Peru and Chile towards FID in the next 12 months. In addition, we expect projects in Italy and Colombia to move into this phase in the near term. In New Zealand, we continue to grow our pipeline of utility scale wind projects under development. We made our first inroads into Indonesia with the acquisition of Inecosolar, a well-established solar system provider in Indonesia with a track record in delivering residential and commercial rooftop solar systems. Since the acquisition, the Inecosolar team has strengthened its marketing presence in the country, with the aim of growing both in the commercial & industrial (C&I) and utility scale wind and solar segments.
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