22 December 2022

Aquila European Renewables plc

Project Greco Update - Completion of Jaén and PPA Secured for Guillena

Aquila European Renewables plc ("AER" or "the Company"), the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbH (the "Investment Adviser") is pleased to announce that Jaén, a 50 MWp solar PV asset has completed construction and is now operational.

Jaén is one of two assets located in southern Spain which belong to the Greco portfolio, which was fully acquired by AER in March 2022. Following completion of Jaén, the Company has paid consideration of EUR 42.5 million to the developer, representing 95% of the total deferred consideration ("Deferred Consideration") amount due for Jaén under the existing sale and purchase agreement ("SPA"). The remaining 5% of the Jaén Deferred Consideration is expected to be paid by the end of Q1 2023.

As announced in October 2022, Jaén entered into a five year pay-as-produced Power Purchase Agreement ("PPA") with Statkraft Markets GmbH, whilst hedging 70% of P50 production.

Following the completion of construction assets Jaén, Albeniz and The Rock, as well as the acquisition of Tiza in 2022, the Company has added approximately 185 MW[1] in operating assets to the portfolio, increasing total operating capacity by 81% (compared to 2021) to approximately 413 MW.

Power Purchase Agreement Secured for Guillena

In addition to the completion of Jaén, the Investment Adviser is also pleased to announce that it has secured a seven year pay-as-produced PPA for Guillena, a 50 MWp solar PV project located in southern Spain, representing the second asset within the Greco portfolio. Like Jaén, the PPA was signed with Statkraft Markets GmbH at an attractive price, whilst hedging 60% of P50 production. The pricing terms remain confidential.

Following the completion of Jaén, Guillena remains the only asset under construction in the Company's portfolio and is expected to be completed by Q2 2023. Completion of Guillena will also trigger the Company's Deferred Consideration payments under the SPA.

In addition to the Deferred Consideration payments for both assets, the transaction is also subject to an earn-out mechanism ("Earn-out"). The Earn-out is calculated as 50% of the value uplift achieved between the actual PPA price entered into versus a reference PPA price. After entering into PPAs for both Jaén and Guillena at more favourable terms than the acquisition case, the Company expects to pay an Earn-out before 31 December 2022. The Company is pleased to be able to secure two long-term PPAs at highly attractive prices in 2022 for a significant part of the portfolio, with Greco representing approximately 16% of its Gross Asset Value ("GAV") as of Q3 2022 on a pro forma basis[2].

The Company has funded the Jaén Deferred Consideration via a combination of surplus cash on hand and also a draw-down of EUR 24 million under the Company's existing revolving credit facility ("RCF"). Approximately EUR 65 million currently remains undrawn under the RCF[3]. The Company expects to continue to utilise its surplus liquidity and RCF to fund its remaining outstanding commitments related to Project Greco, estimated at EUR 47 million[4]. Based on the Company's GAV as of Q3 2022, total gearing is expected to increase to approximately 30%[5] on a pro forma basis after fully funding all outstanding Project Greco commitments.

Following completion of Jaén, The Company's allocation to construction assets has been reduced to approximately 1% of total GAV, based on the Q3 NAV. Under the Company's investment restrictions, AER can invest up to 30% of GAV in assets under development and/or construction.

Ends

For further details contact:

Media Contacts

Edelman Smithfield

Ged Brumby 07540 412301

Kanayo Agwunobi 07581 010560

Sponsor, Broker and Placing Agent

Numis Securities 020 7260 1000

Tod Davis

David Benda

Vicki Paine

NOTES

The objective of Aquila European Renewables plc is to provide investors with an attractive long-term, income-based return in EUR through a diversified portfolio of wind, solar PV and hydropower investments across continental Europe and Ireland. Through the diversification of generation technologies, the seasonal production patterns of these asset types complement each other to balance the cash flow, while the geographic diversification serves to reduce exposure to one single energy market. In addition, a balance is maintained between government supported revenues, fixed price power purchase agreements and market power price risk.

www.aquila-european-renewables.com