63 INTEGRATED ANNUAL REPORT 2026 BUSINESS REVIEWS | MARKET LANDSCAPE Solar and onshore wind continue to be the cheapest sources of new power generation globally, giving them a clear advantage over conventional sources. With record renewable generation output driven by wind and solar, renewables are overtaking coal as the largest electricity source. Global power demand is accelerating as data centres, AI infrastructure, and electrification expand, with renewables projected to meet over 90% of the new demand, creating a robust and sustained market. However, deployment is increasingly constrained by system-level challenges. Grid infrastructure has not expanded at the same rate as renewable energy generation: annual grid spending remains around USD 400 billion per year, compared with around USD 1 trillion for power generation. As a result, an estimated 2,800 GW of solar and wind projects are waiting for grid connection globally, of which more than half are at advanced stages of development. The resulting congestion in transmission networks and long queues for connection approvals are delaying project start-ups and increasing curtailment risks in many markets. Permitting and consenting processes also remain slow and unpredictable, particularly for wind projects, where environmental studies, land negotiations and community consultations can extend timelines significantly. In parallel, changes in policy frameworks, market design and financing conditions – such as tariff restructuring, auction mechanism adjustments and changes in support schemes – have introduced additional uncertainty, particularly in regions where support mechanisms are being recalibrated. While long‑term targets are largely intact, near‑term outcomes vary significantly by geography, reflecting differences in regulatory stability, infrastructure readiness and investment environments. As a result, renewable energy markets are likely to grow unevenly, with periods of acceleration interspersed with phases of adjustment as power systems adapt to higher levels of variable generation. For Yinson Renewables, these dynamics present significant opportunities. Our experienced team, selective market approach, rigorous development practices and extensive local relationships enable us to navigate sector headwinds, capture high-quality opportunities and mitigate emerging execution risks. This positions us well to contribute meaningfully to the global energy transition while delivering sustainable long-term value. Global benchmark levelised cost of electricity by financing date (USD/MWh real 2025) Battery storage Offshore wind Onshore wind Fixed-axis PV 2024 107 78 76 58 2025 2026 2035 89 100 97 80 2024 2025 2026 2035 39 40 39 31 2024 2025 2026 2035 37 39 38 27 2024 2025 2026 2035 Source: Levelised Cost of Electricity Update 2026, Bloomberg NEF.
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