GKO.L Regulatory News (GKO)

23 May 2013

Greenko Group plc

("Greenko" or "the Company")

Operational Update

Greenko, the Indian developer, owner and operator of clean energy projects, is pleased to provide the following operational update:

·; Ratnagiri Wind Farm - Phase 1 (65.6 MW) has now achieved its grid COD ("Commissioned Operating Date") and generated 5,200 MWh in April.

·; The Government of Singapore Investment Corporation Pte Ltd ("GIC") £100 million investment in Greenko has been completed and funds received.

·; A turbine supply agreement for 300 MW was signed with Gamesa Wind Turbines Pvt Ltd ("Gamesa") and the first 100 MW of turbines are due on site within four months.

·; Matrix Wind Farm (15 MW) has started construction. Its power purchase agreement ("PPA") is Greenko's first direct contract with a commercial off-taker.

·; Greenko is on track to complete construction of over 200 MW of additional wind capacity in the current financial year.

Gamesa contract

Greenko recently signed an agreement with Gamesa to support the rapid build out of its utility scale wind portfolio, and complement the existing GE turbine supply agreement. The contract is for the Gamesa G97-2.0 MW IIIA turbine, with a binding obligation for 200 MW and an option for an additional 100 MW. The G97-2.0 is a specialised 2 MW low wind speed turbine, with a hub height of 90m and rotor diameter of 97m. The supply and construction contract includes a two-year warranty, five years' operations and maintenance, a 100% power curve guarantee and attractive availability guarantees linked to the Indian wind season.

This contract helps Greenko maintain its growth rate, while diversifying its technology and delivery risk. An initial order of 100 MW has been placed and the first turbines are due on site within four months. A second order is likely to be placed in July 2013, for delivery before the end of 2013. Overall, Greenko expects the G97-2.0 turbine to lower its average cost of wind energy generation.

Projects in construction

Greenko has a focussed development strategy with 454 MW of capacity currently under construction:

·; Ratnagiri Wind Farm (100 MW - Maharashtra) - Phase-1 (65.6 MW) is now commissioned onto the grid and Phase-2 (36 MW) is ready to start construction in late 2013. With the access roads, grid connection and sub-station for the entire 100 MW site completed during Phase-1, the remaining capacity is scheduled to be commissioned by June 2014, ahead of the wind season.

·; Basvanbagewadi Wind Farm (100 MW - Karnataka) - the sub-station for the grid connection is at an advanced stage and Phase-1 (51.2 MW) remains on track for commissioning with GE's 1.6-XLE turbine in July 2013, ahead of the main monsoon generating period. Phase-2 (50 MW) is set to begin construction with the Gamesa G97-2.0 turbine, and commission in early 2014.

·; Balavenkatpuram Wind Farm(100 MW- Andhra Pradesh) - site access work is complete and the first turbines have arrived on site, with construction due to start at the end of May. Phase-1 will use the enhanced GE 1.6 XLE, with full commissioning expected around the end of the 2013 monsoon. Phase-2 (50 MW) will use the G97-2.0 turbine and is on track to commission in early 2014.

·; Matrix Wind Farm (15 MW - Karnataka) was recently moved from the Company's development pipeline into construction. It effectively extends the existing Basvanbagewadi site, but will sell its power directly to a multi-national IT Park via a 10-year PPA. The attractively priced ReGen 1.5 MW V87 turbine is being used and all the turbines are on site. Project commissioning is planned to take place during the 2013 wind season.

·; Dikchu Hydropower(96 MW - Sikkim) - key components of the project are progressing well. Over 50% of underground structures are already excavated and the first of the project's two Alsthom turbines has been delivered to site. The project remains on-track to begin commissioning in late 2014.

·; Additional Hydropower(92.6 MW - Karnataka and Himachal Pradesh) - five small projects are in construction. These are in line for commissioning in 2014 and early 2015, with site work underway.

In addition to the projects mentioned, Greenko expects to start the construction of approximately 200 MW of further wind capacity in 2013.

Outlook

The backdrop in India remains positive, as conventional power assets struggle to supply power to the grid, due to both fuel supply and off-take price issues. Greenko's wind and hydro portfolio in many states can now profitably supply power below the price of conventional generation. This coupled with increased demand, means that Greenko is well positioned to provide financially attractive, sustainable long-term returns.

The Company's growth potential was enhanced by the recent £100 million investment into its subsidiary (Greenko Mauritius) by GIC. This investment should help accelerate the Company past its original target of 1,000 MW in 2015, and establish the foundations for approximately 2,000 MW in 2018. Greenko strongly believes that its diversified portfolio of clean energy power projects, both operating and under active development, is an attractive and sustainable class of long term assets for the Indian marketplace.

Greenko's results will be announced for the year ending 31 March 2013 during the week commencing 22 July.

Anil Chalamalasetty, CEO of Greenko, said:

"This has been a good year for Greenko, with operating capacity growing 127 MW to 309 MW and a £100 million investment from GIC that shows great confidence in Greenko's business model and its opportunity in the Indian power market. Our focus for the next period is all about execution and we expect to commission several new wind farms in the coming months."

-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 utilising a de-risked portfolio of wind, run-of-river hydropower, natural gas and biomass assets. The Group is now focused on building new utility scale wind farms and hydropower projects across India. Greenko intends to increase the installed capacity it operates by winning concessions to develop and build 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 and spreads its risk across a number of projects that utilise various well-proven environmental technologies. The Company's goal is to reach 1,000 MW of operational capacity in 2015 and approximately 2,000 MW in 2018.

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.

About Gamesa

Gamesa is a global wind turbine manufacturer with 19 years' experience and 27,000 MW installed across 40 countries. Its comprehensive expertise includes the design, manufacturing, installation and maintenance of wind turbines. It is also a world leader in the development, construction and sale of wind farms, having installed close to 6,000 MW, with a portfolio of 18,000 MW at various stages of development in Europe, America and Asia. Gamesa listed on the Madrid Stock Exchange in 2000 and currently has a market capitalisation of approximately €800 million.