3 February 2023

Aquila European Renewables plc

2023 Dividend Guidance and EUR 20 million share buyback

·    2023 target dividend of 5.51 cents per Ordinary Share, +5% growth vs. 2022

·    Strong dividend cover of approximately 1.8x expected in 2023

·    Up to EUR 20 million share buyback programme in response to current share price discount to Net Asset Value ("NAV") per Ordinary Share

·    Members of the Aquila European Renewables plc ("AER") Board of Directors and Investment Adviser employees have committed to acquire AER Ordinary Shares

Following the release of the Q4 2022 Factsheet, Aquila European Renewables plc ("AER" or "the Company"), is pleased to announce its dividend guidance for 2023, as well as the approval of a share buyback programme ("Share Buyback Programme") for up to EUR 20 million.

2023 Dividend Guidance

In accordance with AER's investment objective to pay a progressively growing dividend over the medium term, the Company is pleased to announce a target dividend of 5.51 cents per Ordinary Share ("2023 Target Dividend") in relation to the year ending 31 December 2023, subject to the portfolio performing in line with expectations. The 2023 Target Dividend represents an increase of 5% versus the prior year and follows a 5% increase in the 2022 dividend announced in April 2022.

The Company's portfolio has undergone a transformation during 2022, with two construction projects reaching completion, whilst also acquiring two additional operational assets during the period. As a result, AER's portfolio of operating assets has increased by approximately 80%[1] during 2022, resulting in a step-change in earnings capacity. The majority of assets added to the portfolio in 2022 comprised of solar PV in Iberia, which has also led to a more balanced allocation between wind and solar PV, in line with the Company's portfolio diversification objectives. Following this investment activity, the capital raised in late 2021 has now been fully deployed.

Based on the Company's 2023 Target Dividend and assuming P50 production forecasts and the latest analyst captured power price forecasts, AER expects robust dividend cover of approximately 1.8x in 2023 and approximately 1.6x over the next five years (including 2023), both figures calculated net of debt amortisation and excluding the Share Buyback Programme.

Share Buyback Programme

The AER Board and Investment Adviser note the discount at which AER's share price trades as compared to its NAV per Ordinary Share and believe that the current share price does not accurately reflect the inherent value in the portfolio. Accordingly and as part of a broader package of initiatives seeking to improve the marketability of the Company's shares, the AER Board is announcing a Share Buyback Programme for up to EUR 20 million.

The Share Buyback Programme will be carried out under the existing shareholder authorisation granted at the last Annual General Meeting for purchases of Ordinary Shares by the Company in the market for up to 14.99% of the Company's issued capital.

The Share Buyback Programme is expected to be accretive to both NAV per Ordinary Share and dividend cover, as well as providing additional liquidity for AER's underlying shares. The Share Buyback Programme is expected to be funded from the Company's surplus liquidity and operating cash flows from the portfolio.

The 2023 Target Dividend is only a target and not a forecast. There can be no assurance that this target can or will be met and it should not be seen as an indication of the Company's expected or actual results or returns. Accordingly, investors should not place any reliance on this target in deciding whether to invest in ordinary shares or assume that the company will make any distributions at all.

Share Purchases

Members of the Board of Directors have also announced a commitment to acquire additional AER Ordinary Shares on-market following today's announcement, as have employees of the Investment Adviser, further underpinning their belief in the positive outlook for the Company.

Investment Adviser Fee

As previously announced the Company's Investment Adviser has undertaken to receive its Investment Adviser fee (net of any applicable tax) in AER Ordinary Shares rather than cash, for the period up until 30 June 2023, further strengthening the alignment of interest between the Investment Adviser and AER shareholders. As outlined in clause 10.17 of the 2020 Prospectus, when the Ordinary Shares are trading at a discount to Net Asset Value, the Investment Adviser fee will be satisfied through the market purchase of Ordinary Shares. As at 31 December 2022, Aquila Capital holds approximately 7.3 million shares in the Company, equivalent to approximately 1.8% ownership in the Company.

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

LEI Number: 213800UKH1TZIC9ZRP41