66 YINSON HOLDINGS BERHAD BUSINESS REVIEW YINSON RENEWABLES COMMENTARY BY DAVID BRUNT, YINSON RENEWABLES CHIEF EXECUTIVE OFFICER Peru Peru is a strategically important market for us, and the first country in the region where we have a project in operation. The 97 MWp Matarani Solar Park was commissioned in 2024. Subsequently, we have started construction on the first phase (53 MWp) of the ~130 MWp Majes project, and which is expected to be operational during 2026. We have been reviewing other opportunities – both greenfield and late-stage developments. Latin America has one of the cleanest electricity systems in the world. Roughly 60% of the region’s electricity comes from renewables, and this is poised to grow to 80% by 2050 with today’s policy settings. While hydropower has historically been integral to Latin America’s energy mix, wind and solar are expected to experience the highest growth in coming years. The cost competitiveness of renewables over other new energy sources anchors it as the preferred power source for new generation capacity. Renewable energy is expected to displace costly and polluting diesel generation, often used as the last-resort source during power shortfalls, such as in Peru. Latin America Highlights FY2025 Assets 557 MW utility scale assets operational 11 MW rooftop and commercial & industrial assets operational 539 MW assets under construction and pre-construction ~1,055 GWh annual total generation capacity ~USD 1 billion forecasted revenues underpinned by long-term PPAs Pipeline 1,032 MW projects secured and in development ~3,900 MW early-stage development pipeline 865,602.2 MWh net power generated ~771 kt CO2e carbon avoided Operational performance MARKET OVERVIEW AND OUTLOOK Global clean energy deployment in 2024 illustrates the dilemma of addressing climate change while delivering sustainable and economic shareholder value. While renewable energy projects are being deployed at record levels, some major energy players are reducing their ambitions to focus on their core, fossil fuel businesses. The simple explanation to that dilemma is that the move to renewable energy sources always had to be a transition, driven by climate as well as economic factors, and not a knee-jerk reaction. Existing energy infrastructure, such as oil & gas, is still an imperative part of the mix, even in the most extreme net zero scenarios. During periods of energy crisis and conflict, which heighten the focus on resilience and energy security, only the most economically viable solutions prevail. In this environment, companies that chased larger numbers and longer-term goals associated with offshore and floating wind have had to scale back and concentrate on their core businesses to deliver shareholder value in the near term. This is why there has been an increase in negative media coverage in this space recently. Nevertheless, unlike the renewables space, the onshore renewables space has continued to boom – and massively so. In 2024, global investment in renewable energy and the energy transition reached close to USD 2 trillion, nearly double the total investment in fossil fuels. Why? Because onshore solar and wind energy continues to be the lowest cost solution for new electricity generation in almost all locations globally. YEAR IN REVIEW The 2 x 87.5 MWp Rising Bhadla Solar Parks and 285 MWp Nokh Solar Park in India are operating at full capacity and continue to generate stable power and predictable revenue streams. The solar parks deliver power to Rajasthan’s power grid and sell power to client NTPC, India’s largest power utility. Commercially, an increased tariff was awarded to the Nokh Solar Park under its PPA terms to compensate for increased costs related to taxes and import duties during construction. The 97 MWp Matarani Solar Park in the Arequipa region of Peru came onstream in September 2024 on budget and ahead of schedule. The plant is now generating at full capacity, selling electricity to client Orygen and delivering power to the Peruvian electric grid.
RkJQdWJsaXNoZXIy NDgzMzc=