Leading the way on ESG ASIA PACIFIC RENEWABLE ENERGY INSIGHTS MARCH 2021 3 Introduction 4 Our recent renewables awards & experience 10 Renewable Energy in Australia 16 Renewable Energy in China 22 Renewable Energy in India 25 Renewable Energy in Indonesia CONTENTS 30 Renewable Energy in Japan 35 Renewable Energy in South Korea 39 Renewable Energy in Malaysia 45 Renewable Energy in Thailand 54 Renewable Energy in Vietnam 56 Renewable Energy in Philippines 60 Key contacts This publication (the “Publication”) is intended merely to highlight issues and not to be comprehensive, nor to provide legal advice, and its contents should not be relied upon as legal advice, either generally or in relation to any specific transaction. Although the contents of the Publication are current as at the date of the Publication, the subjects covered constantly change and develop, and neither Linklaters LLP nor its partner or associated firms undertakes to update them in respect of information provided to it after that date, or to notify any person of such information. Linklaters LLP and its partner or associated firms accepts no responsibility for any loss which may arise from reliance on the information contained in the Publication. Should you have any questions on issues presented here or on other areas of law, please contact one of your regular contacts. Please also refer to specific disclaimers in the Publication. This Publication has been prepared by Linklaters LLP and its partner or associated firms - Allens, Widyawan & Partners and Talwar Thakore & Associates, with contributions from other local law firms. Linklaters 2 Introduction Despite economic and other headwinds resulting from the COVID-19 pandemic, investment in renewable energy in Asia Pacific has been remarkably resilient in the last 12 months. In fact, the pace of development and investment continues to outstrip other parts of the world supported by rising populations, robust economic growth and the greenfield nature of the renewables market in the region underpinned by some relatively attractive government support initiatives. Many commentators predict that Asia Pacific will continue to outperform other regions as a market for the investment and development in renewable energy over the coming decade with capacity expected to increase by up to 2 terawatts by 2030 1 and the levelized cost of energy for renewables falling below fossil fuel alternatives within the same time horizon 2. This outlook reflects what would be a fundamental shift in the regional energy mix and is likely to lead to profound and inalterable changes in the way energy is generated, transmitted and consumed in Asia Pacific – it is a genuinely exciting time to be a part of this narrative. Against this backdrop, we are pleased to launch the 2021 edition of our Asia Pacific Renewable Energy Insights report in conjunction with our alliance and other key relationship firms across the region. As you can read further below, we have the longest-standing and most award-winning green energy practice in Asia Pacific which combines our global sector expertise and experience with our regional ‘on the ground’ coverage of all the key jurisdictions which matter in this sector. We are proud to work with leading developers, contractors, financiers, governments and others in this space across all the key markets in the region as covered in our report. Our experience over the past 12 months reflects what we are seeing in terms of major themes in the sector, including: > The continued rise of offshore wind in North Asia, including as Japan, Korea, Vietnam and other new markets look to build on the success of the Taiwan story. We have acted on all closed project financings for offshore wind in these markets and continue to be busy working on a range of ongoing projects in these markets; > New investors entering the Asia Pacific, including strategic developers seeking new opportunities away from their existing markets and an upsurge in interests from financial sponsor clients, including specialist energy and infrastructure funds; > The development of innovative financing approaches to support renewables projects, including portfolio structures, holdco financings, green bonds and other solutions which are tailored to the specific requirements of the sector; > Continued focus on new and emerging technologies such as green hydrogen (including in Japan as an export target for leaders in this space such as Australia) and utility-scale batteries (linked to renewables projects which being explored in Korea among others) in each case which are likely to accelerate the renewables story and attract further international investment; and > A well-documented global focus on environmental, social and governance (ESG) issues which has led to a heightened focus on renewables and a likely acceleration of the energy transition in the post-pandemic world. We hope you find this guide is informative and helpful and we always welcome new discussions about ways we can help support your ambitions in this area. John Maxwell James McLaren Joo Hee Lee Partner, Tokyo Partner, Hong Kong SAR Managing Partner, Seoul Regional Head of Energy & Infrastructure Asia Head of Green Energy Practice Tel: +82 2 6320 1040 Tel: +81 3 6212 1227 Tel: +852 2842 4106 [email protected] [email protected] [email protected] Hirofumi Taba Ying Fu Xylia Sim Partner, Tokyo Counsel, Hong Kong SAR Counsel, Singapore Tel: +81 3 6212 1245 Tel: +852 2901 5379 Tel: +65 6692 5893 [email protected] [email protected] [email protected] 1 Boston Consulting Group, “Riding the Renewables Wave in Asia-Pacific”, January 11 2021: https://www.bcg.com/publications/2021/asia-pacific-renewable-energy- opportunities 2 Wood Mackenzie, “Renewables in most of Asia Pacific to be cheaper than coal power by 2030”, 26 November 2020: https://www.woodmac.com/press-releases/ renewables-in-most-of-asia-pacific-to-be-cheaper-than-coal-power-by-2030/ Linklaters 3 Our recent renewables awards and experience Our recent Asia renewables awards. Practice awards Asia Pacific Law Firm of the Year Band 1 – Project & Infrastructure: Asia-wide PFI Asia Awards 2019 Chambers Asia Pacific 2021 Firm of the Year: International (Projects & Energy) Band 1 – Projects & Infrastructure China Law & Practice Awards 2020 (International Firms): China, Korea, Vietnam Chambers Asia Pacific 2021 Project Finance Law Firm of the Year The Asset Triple A Asia Infrastructure Awards 2020 Band 1 – Projects & Energy: Thailand, Indonesia, India Project Finance Law Firm of the Year: Taiwan Chambers Asia Pacific 2021 The Asset Triple A Asia Infrastructure Awards 2020 Band 1 – Energy & Natural Resources: Australia Chambers Asia Pacific 2021 (Allens) Award winning projects Changfang and Xidao offshore wind farm, Yunlin offshore wind farm, Taiwan Taiwan Asia Pacific Renewables Deal of the Year 2019 Asia-Pacific Renewables Deal of the Year PFI Asia Awards PFI Asia Awards 2020 Asia Pacific Offshore Wind Deal of the year 2019 Project Finance Deal of the Year IJ Global Awards FinanceAsia Achievement Awards 2020 Overall Global ECA-backed Finance Deal of Syndicated Project Finance Deal of the Year the Year TXF Perfect 10 Deals of the Year 2019 APLMA 10th Asia Pacific Syndicated Loan Market Awards 2021 Project Finance Deal of the Year Asia Offshore Wind Deal of the Year IFLR Asia Pacific Awards 2021 Proximo Deals of Year Awards 2019 Renewable Energy Deal of the Year: Regional Formosa 2 offshore wind farm, Taiwan The Asset Triple A Asia Infrastructure Awards 2020 Renewables ECA-backed Finance Deal of the Year Renewable Energy Deal of the Year: Taiwan (Wind) TXF 2019 The Asset Triple A Asia Infrastructure Awards 2020 Green Project of the Year: Taiwan The Asset Triple A Asia Infrastructure Awards 2020 Other award-winning projects Green Project of the Year: Regional Asia-Pacific Innovation Deal of the Year: The Asset Triple A Asia Infrastructure Awards 2020 Akita offshore wind farm PFI Asia Awards 2020 Green Project of the Year: India The Asset Triple A Asia Infrastructure Awards 2020 Linklaters 5 Our recent Asia renewables experience. Thailand China Pakistan Japan > the sponsors on the portfolio financing of the ADB-financed 62.2MW > the sponsors and project companies on the project financing of the 1,044MW Hai Long > China Development Bank (CDB) on > Marubeni Corporation on the first commercial scale offshore wind project at Akita Port and Noshiro Port in Akita, Japan Green Yellow Rooftop Solar Project in Thailand offshore wind farm in Taiwan, comprising Hai Long 2A (300MW), Hai Long 2B (232MW) financing the development of the > Ørsted on its formation of a joint venture with TEPCO to bid for offshore wind projects being auctioned off the coast of > an international lender on financing a Chinese solar operator in setting and Hai Long 3 (512MW) 700.7MW Azad Pattan Hydro Power Choshi city, Japan up a company to bid for solar projects in Thailand and advising on solar > the lenders and ECAs on the 605MW Changhua offshore wind project financing in Project > Macquarie’s Green Investment Group on the formation of a joint venture with a global energy leader, Iberdrola, on the co- power bidding regulations and requirements Taiwan sponsored by Ørsted > CDB and Habib Bank Limited as development of a 3.3GW portfolio of six offshore wind projects in Japan > the lead arranger and original lender on the financing to Greenovation > the developer on the development, structuring, procurement and financing of an lenders, on the project financing of the > an international developer on the partnership with a Japanese offshore wind developer in relation to a portfolio of 9 offshore Power Limited, a project company wholly owned by Gunkul Engineering onshore wind farm in Taiwan 1,124MW hydropower station to be wind projects in Japan Public Company Limited to construct, develop and operate a 67.5MW developed by Kohala Hydro Company > wpd AG on the project financing of the 350MW Guanyin offshore wind farm project in > the lenders supporting the bid on one of the Round 1 fixed bottom offshore wind projects wind power project in Nakorn Ratchasima Province, Thailand (pvt.) 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