GKO.L Regulatory News (GKO)

4 December 2012

Greenko Group plc

("Greenko" or "the Company")

Hydropower Acquisition

Greenko, the Indian developer, owner and operator of clean energy projects, is pleased to announce the acquisition of the Sumez 14 MW run-of-river hydro power project in the Shimla District of Himachal Pradesh. This brings Greenko's hydro operating portfolio to 165 MW, and its total operating portfolio to over 289 MW, keeping the Company comfortably on track for its target of 1,000 MW in 2015.

Sumez was commissioned in early 2012 and is expected to have an average Plant Load Factor ('PLF') in excess of 55%. It is registered for Renewable Energy Certificates and the Clean Development Mechanism. Power is currently contracted to the local state electricity board, with the flexibility to access the merchant market. The total value of Sumez, which is located near Greenko's existing cluster of Himachal projects, is approximately €18.3 million, including normal project finance debt.

Greenko now has 11 run-of-river hydro power projects, totalling 71 MW, in Himachal Pradesh.  As a whole, these projects have a strong hydrology profile due to their position at the base of the Himalayan Mountains, with diverse water catchment sources including snow melt, rainfall and glacier melt. In a normal hydrology year, the Himachal portfolio should have a PLF of over 60% and collectively generate EBITDA from power sales (i.e. excluding any carbon benefit) of approximately €15 million, at the present exchange rate.

In total, Greenko's run-of-river hydro power portfolio now consists of 165.25 MW of operating projects, 189 MW of projects currently in construction - split between a 96 MW project in Sikkim and five projects totalling 93 MW in Karnataka - and a further 182 MW of projects under active development. All of the projects currently in construction are expected to be commissioned within 24 months.

While Greenko intends to grow its hydro portfolio primarily through organic development, it will continue to evaluate acquisition opportunities on a case-by-case basis. Where there is a strong investment case, Greenko may acquire additional hydro assets which are either operational, in construction, or at an advanced developmental stage.

Commenting on the acquisition, Anil Chalamalasetty, CEO and MD of Greenko, said: "Greenko's hydro assets are generating good returns and form the backbone of our diversified power portfolio. Our hydro capacity has grown by 58% this financial year and Sumez now gives us access to the merchant power market, where we expect to generate attractive returns for our shareholders. While most of the next two years' growth will come from our own wind and hydro developments, we will continue to selectively acquire high quality hydro projects, as current market conditions have created opportunities for a well-capitalised business, such as Greenko, to secure assets at very attractive prices."

-Ends-

For further information please visit www.greenkogroup.com or call:

Greenko Group plc

Anil Chalamalasetty +44 (0)20 7920 3150

Mahesh Kolli

Vasudeva Rao Kaipa

Mark Thompson

Arden Partners plc

Richard Day / Adrian Trimmings +44 (0)20 7614 5917

Tavistock Communications

Matt Ridsdale / Mike Bartlett +44 (0)20 7920 3150

About Greenko

Greenko is a mainstream participant in the growing Indian energy industry and a market leading owner and operator of clean energy projects in India. The Group is building a de-risked portfolio of wind, hydropower, natural gas and biomass assets within India and intends to increase the installed capacity it operates by winning concessions to develop new greenfield assets as well as making selective acquisitions which enhance shareholder value.

Greenko's portfolio is carefully planned and managed to ensure it offers investors diversification geographically and spreads risks across a number of projects which utilise varied environmental technologies. The Company's goal is to reach 1 GW of operational capacity in 2015.

With a core belief in sustainability both operationally and environmentally, Greenko endeavours to be a responsible business playing an important role in the community beyond its role in the power generation industry. The Company maintains a continuous involvement in localised projects and community programmes which centre on education, health and wellbeing, environmental stewardship and improving rural infrastructure.

Greenko Group plc was admitted to trading on the AIM market of the London Stock Exchange (LSE: GKO) in November 2007.