Aquila Euro. Regulatory News (AERI)

December 4, 2020

Aquila European Renewables Income Fund plc to acquire its first solar project in Spain

Aquila European Renewables Income Fund plc ("AERIF" or "the Company"), the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbH, is pleased to announce that its fully owned subsidiary, Tesseract Holdings Limited has entered into a Share Purchase Agreement ("SPA") to acquire 100% of a Spanish solar PV construction project ("Albeniz"), along with an interest in the shared substation. The acquisition is structured as an unlevered investment. The Company's estimated total capital commitment for Albeniz represents approximately 35% of its existing cash on hand at the fund level.

Albeniz is a 50 MWp project located in the South of Spain, one of the highest yield regions in Europe. The project is underpinned by a fixed price engineering, procurement and construction ("EPC") agreement. Construction is expected to commence shortly and the Company anticipates that the project will reach completion at the end of 2021. Albeniz is expected to have an operating life of 30 years.

The SPA is subject to certain closing conditions, including (but not limited to) the commencement of construction and entering into a Power Purchase Agreement at pre-defined, satisfactory terms for the Company. Closing under the SPA is expected to take place in late December 2020.

The project will save approximately 31,800 tonnes of CO2 emissions per annum and an estimated 955,500 tonnes over the projected lifetime of the asset.

Ian Nolan, Chairman of the Company, said: "We are pleased to announce our first investment since closing our most recent capital raise, as well as adding an additional solar asset to further balance the portfolio's technology allocation. Albeniz represents the Company's first Spanish project and further expands our footprint in the Iberian region. We look forward to a successful closing."

Commenting on today's announcement, Christine Brockwell, Head of Partnerships & Portfolio Management at Aquila Capital, the investment adviser: “This acquisition will make an excellent addition to the portfolio, offering further diversification for investors in terms of technology and geographic mix. We look forward to working with our construction partners under the EPC agreement to successfully deliver a high-quality project.”

Ends

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, wind and solar PV 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. AERIF is targeting a minimum of 4.0 cents per ordinary share in relation to the financial year ending 31 December 2020 and 5.0 cents per ordinary share in respect of subsequent financial years, with the aim of increasing this dividend progressively over the medium term.

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