77 INTEGRATED ANNUAL REPORT 2026 Italy Our development activities progressed in this market, where demand for long-term price stability remains strong, particularly among corporates and industrial consumers. Within this context, our greenfield pipeline remained robust at approximately 370 MW. This includes one project in active development, five with consent applications submitted, and four projects totalling around 100 MW that have secured Environmental Impact Assessment (EIA) approvals and are expected to receive final authorisations in 2026. Europe’s energy transition advanced further, driven by the Renewable Energy Directive which mandates a 42.5% renewable energy share by 2030, with an ambition to reach 45%. Wind and solar now generate over 30% of EU’s electricity – exceeding fossil generation for the first time in 2025, while renewables accounts for around half of power generation. Renewable energy investment rose by 63% in early 2025 despite elevated energy prices and geopolitical uncertainty. EU‑level reforms to streamline permitting and accelerate deployment – including Renewable Acceleration Areas and ongoing electricity market design reforms – are improving investment visibility. Reduced reliance on imported fossil fuels has delivered major energy security gains, including €59 billion in avoided fossil fuel import costs since 2019. System integration is emerging as a key constraint, shifting near-term priorities toward grid expansion, greater system flexibility and sustained investment. Europe Latin America remains one of the world’s cleanest power regions, with about 70% of electricity generated from renewables today, with potential to reach 80% by 2050 under current policies. Wind and solar are growing quickly alongside the region’s strong hydropower base, increasingly displacing gas and diesel generation during supply shortfalls. Clean energy investment in the region has expanded by around 25% over the past decade, reaching ~USD 70 billion in 2025. Governments have advanced major regulatory and infrastructure measures during the year. In Brazil, new policy incentives were introduced, and 10,500 km of transmission lines was auctioned to enhance grid capacity and clean energy integration. Chile and Peru awarded significant transmission and generation tenders, including over USD 2 billion in transmission projects in Peru and more than 20 projects in Chile. Latin America Strategic goals • Be a significant standalone business within Yinson – a global Independent Power Producer (IPP). • Participate in the full renewables value chain in our core markets. • Unlock additional value through strong strategic partnerships. Strategies • Focus on core markets and achieve economies of scale. • Continue growth driven by a lean, efficient and competent team. • Deliver productive platform growth by maintaining greenfield (organic) project pipeline and selective M&A projects. • Optimise asset operations through digitalisation and innovative solutions. • Deliver value by optimising capital stack and implementing efficient capital recycling to secure robust equity and financing partnerships. Purpose To provide renewable energy generation systems, driving long-term value creation for our stakeholders. STRATEGIC FOCUS AREAS BUSINESS REVIEWS | YINSON RENEWABLES Peru The 97 MW Matarani Solar Park completed its first full year of operations in October 2025, delivering output close to targeted generation levels while achieving lower‑than‑expected operating costs. Matarani’s off taker, Orygen, is one of Peru’s most bankable PPA providers, and this relationship has become central to our growth strategy in Peru, positioning us well for future projects in the market. Construction also commenced on the 53 MW Majes Phase 1 Solar Project, which is on track for completion in Q3 2026. The project is supported by a 15-year PPA with a leading Peruvian counterparty. Our pipeline continues to gain momentum, with 314 MW of secured projects in development and consent. Brazil We continue to evaluate merger and acquisition (“M&A”) opportunities, supported by the country’s large renewable energy market. Our existing projects offer potential for future expansion and hybridisation, aligning with broader national efforts to scale clean generation and address emerging grid bottlenecks. Access to grid and a challenging PPA market, combined with high interest rates, has limited our activities in 2025.
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