News Release

• Acquisition of three operating wind farms in Chile totaling a gross installed capacity of 332 MW, more than doubling Innergex’s gross installed capacity in Chile
  
• Incorporates wind technology to Innergex’s existing hydro and solar assets in Chile, bringing meaningful technological and geographical diversification, while improving overall contractedness
  
• Assets contracted under two long-term power purchase agreements with an average remaining tenor of 16 years
  
• Acquisition to bring accretive refinancing opportunities for the entire Innergex Chile portfolio
  

LONGUEUIL, Quebec, June 9, 2022 – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) announces it has completed the acquisition of 100% of the ordinary shares of Aela Generación S.A. and Aela Energía SpA (together “Aela”), a 332 MW portfolio of three newly-built operating wind assets in Chile, for a purchase price of US$685.6 million (CAN$861.2 million).

Established in 2013 as part of a joint venture between global sustainable infrastructure investor Actis (60%) and global wind and solar company Mainstream (40%), Aela has grown to become one of Chile’s largest independent power producers of renewable energy. The Aela’s portfolio consists of the Sarco wind farm (170 MW), the Aurora wind farm (129 MW) and the Cuel wind farm (33 MW). Revenues from these facilities are anchored by two forms of power purchase agreements with 25 Chilean distribution companies, maturing at the end of 2036 and 2041, for an average remaining tenor of 16 years.

“This acquisition marks Innergex’s sixth investment in Chile since 2018. Earlier this year, we completed the acquisition of a 50.6 MW solar farm in the Atacama Desert, and only a few weeks ago, we announced the development of two new utility-scale battery energy storage projects, totaling 425 MWh, in Chile. Altogether, our development and M&A activities bring significant and complementary diversification to our generation mix,” said Michel Letellier, President and Chief Executive Officer of Innergex. “Chile continues to represent an attractive market for investment and provide several avenues for growth. While we continue to work on improving operational efficiency and financial optimization, our teams remain focussed on advancing greenfield project development and seizing M&A opportunities that the country has to offer.’’

The facilities have a long-term average of 954.7 GWh per year. The facilities have an attractive cash flow profile and are expected to generate revenues of US$74.6 million (CAN$93.5 million) for the first twelve months following the closing date, and operating, general and administrative expenses of US$26.6 million (CAN$33.4 million) during the same period.

On February 22, 2022, to finance the purchase price of the acquisition, Innergex completed a CAN$172.5 million bought deal equity financing of common shares, along with a CAN$37.3 million private placement with Hydro-Québec. The remaining financing requirements will be financed by net proceeds from a combined refinancing of the non-recourse debt at the Facilities and at Innergex’s existing Chilean projects, targeting an investment grade rating for the overall Chilean portfolio.

About Innergex Renewable Energy Inc.

For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 83 operating facilities with an aggregate net installed capacity of 3,484 MW (gross 4,184 MW) and an energy storage capacity of 150 MWh, including 40 hydroelectric facilities, 35 wind farms and 8 solar farms. Innergex also holds interests in 14 projects under development, 3 of which are under construction, with a net installed capacity of 733 MW (gross 770 MW) and an energy storage capacity of 754 MWh, as well as prospective projects at different stages of development with an aggregate gross installed capacity totaling 6,679 MW. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.

Cautionary Statement Regarding Forward-Looking Information

To inform readers of the Corporation's future prospects, this press release contains forward-looking information within the meaning of applicable securities laws (“Forward-Looking Information”), including the Corporation’s growth targets, power production, prospective projects, successful development, construction and financing of the projects under construction and the advanced-stage prospective projects, sources and impact of funding, project acquisitions, execution of non-recourse project-level financing (including the timing and amount thereof), and strategic, operational and financial benefits and accretion expected to result from such acquisitions, business strategy, future development and growth prospects , business integration, governance, business outlook, objectives, plans and strategic priorities, and other statements that are not historical facts. Forward-Looking Information can generally be identified by the use of words such as “approximately”, “may”, “will”, "could”, “believes”, “expects”, “intends”, "should”, "would”, “plans”, “potential”, "project”, “anticipates”, “estimates”, “scheduled” or “forecasts”, or other comparable terms that state that certain events will or will not occur. It represents the projections and expectations of the Corporation relating to future events or results as of the date of this press release.

Forward-Looking Information includes future-oriented financial information or financial outlook within the meaning of securities laws, including information regarding the Corporation's targeted production, the estimated targeted revenues, and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of expected results, of the expected commissioning of Development Projects, of the potential financial impact of completed and future acquisitions and of the Corporation's ability to sustain current dividends and to fund its growth. Such information may not be appropriate for other purposes.

Forward-Looking Information is based on certain key assumptions made by the Corporation, including, without restriction, those concerning hydrology, wind regimes and solar irradiation; performance of operating facilities, acquisitions and commissioned projects; project performance; availability of capital resources and timely performance by third parties of contractual obligations; favourable market conditions for share issuance to support growth financing; favourable economic and financial market conditions; the Corporation’s success in developing and constructing new facilities; successful renewal of PPAs; sufficient human resources to deliver service and execute the capital plan; no significant event occurring outside the ordinary course of business such as a natural disaster, pandemic or other calamity; continued maintenance of information technology infrastructure and no material breach of cybersecurity.

For more information on the risks and uncertainties that may cause actual results or performance to be materially different from those expressed, implied or presented by the forward-looking information or on the principal assumptions used to derive this information, please refer to the "Forward-Looking Information" section of the Management's Discussion and Analysis for the three-month periods ended March 31, 2022.

For information

Investor Relations
Jean Trudel
Chief Financial Officer
450 928-2550, ext. 1252
investorrelations@innergex.com

Media
Karine Vachon
Senior Director – Communications
450 928-2550, ext. 1222
kvachon@innergex.com