Extension of Investment Adviser fee arrangement

6 August 2021

Aquila European Renewables Income Fund plc extends Investment Adviser fee arrangement with Aquila Capital Investmentgesellschaft mbH

Aquila European Renewables Income Fund plc ("AERIF" or "the Company"), the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbH ("Aquila Capital" or "Investment Adviser"), is pleased to announce today that its Investment Adviser has undertaken to extend the existing arrangement whereby the Investment Adviser fee (net of any applicable tax) is paid in AERIF Ordinary Shares ("Ordinary Shares") rather than cash, for an additional two years to 30 June 2023, further strengthening the alignment of interest between the parties and AERIF shareholders.

As outlined in clause 10.17 of the 2020 Prospectus, the Investment Adviser had undertaken to receive its Investment Adviser fee (net of any applicable tax) in Ordinary Shares (rather than cash) during the first two years of its appointment following the initial public offering of AERIF, which took place in June 2019. Accordingly, this undertaking recently expired.

Based on the Company's Net Asset Value ("NAV") of EUR 320.4m as at 31 March 2021, the Investment Adviser fee equates to approximately EUR 2.4m (on an annual basis). Extending the existing arrangement for approximately two years will further enhance dividend cover, liquidity and preserve AERIF's cash flow, which can be redeployed towards funding accretive investment opportunities.

Aquila Capital currently holds approximately 2.9m shares in the Company, equivalent to approximately 0.9% ownership in the Company.

Commenting on today's announcement, Ian Nolan, Chairman said: "Today's announcement reflects the strong relationship we have with Aquila Capital and further reinforces the alignment of interests between both companies and our shareholders. We look forward to developing these further over the coming years."

Roman Rosslenbroich, Chief Executive Officer and Co-Founder Aquila Capital said: "We are very happy to continue the existing arrangement with AERIF. We have been and will remain a committed shareholder in the Company and look forward to working closely with the Board to further deliver on its growth ambitions in the European renewables sector."

In accordance with appropriate laws and corporate governance standards, Aquila Capital also undertakes to abstain from any AERIF shareholder voting matters relating to its role as the Investment Adviser.

All of the existing terms which govern the Investment Adviser fee and the issuance of Ordinary Shares, as documented in the Prospectus remain unchanged. In particular, if the Ordinary Shares are trading at a premium to the prevailing NAV, the Company will issue new Ordinary Shares to the Investment Adviser. If, however, the Ordinary Shares are trading at a discount to the prevailing NAV at the relevant time, no new Ordinary Shares will be issued by the Company and instead the Company will instruct its broker to acquire Ordinary Shares to the value of fee due in the relevant period.

For further details contact:

Media contacts:

Smithfield Consultants

Ged Brumby | 020 3047 2527

John Kiely | 020 3047 2538

Andrew McLagan | 020 3047 2006

Sponsor, Broker and Placing Agent

Numis Securities 020 7260 1000

Tod Davis

David Benda

Vicki Paine

NOTES

Aquila European Renewables Income Fund plc ("AERIF" or the "Company") is a London-listed renewable energy infrastructure investment company with the aim to provide investors with an attractive long-term, income-based return in EUR through a diversified portfolio of hydropower, onshore wind and solar PV investments across continental Europe and Ireland. Through the diversification of generation technologies, the seasonal production patterns of these asset types complete each other to balance the cash flow, while the geographic diversification serves to reduce exposure to one single energy market. AERIF is targeting 5.0 cents per ordinary share in relation to the financial year ending 31 December 2021, with the aim of increasing this dividend progressively over the medium term.

Further details can be found on AERIFs website at www.aquila-european-renewables-income-fund.com.

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