Acquisition

April 1st, 2021

Aquila European Renewables Income Fund plc expands its Portuguese solar portfolio

Aquila European Renewables Income Fund plc ("AERIF" or "the Company"), the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbh, today announces that it has entered into a Sale and Purchase Agreement ("SPA") to acquire 50% of the equity in an unlevered Portuguese solar operating asset ("Ourique"). Closing of the transaction is expected to occur in April 2021.

Ourique is located in Alentejo, Portugal, and has an installed capacity of c.60 MWp. The solar farm started its operations in December 2019 and its power price hedges cover 100% of the produced energy until March 2026.

Ourique will save approximately 17,035 tons of CO2 emissions per annum, and an estimated 511,046 tonnes over the lifetime of the project (100% interest basis).

Upon completion of the acquisition of Ourique, the Company will have committed c. 92% of the capital raised to date in a mix of operating and construction assets in six European countries. Together with the other solar projects Benfica III and Albeniz, Ourique adds to the technology diversification targets of the Company and strengthens AERIF's presence on the Iberian Peninsula.

Ian Nolan, Chairman of the Company, said: "We are pleased to announce that we have committed nearly all of the equity raised in October 2020 within five months. Ourique will contribute to reducing Europe's carbon footprint, and it further diversifies our technology mix."

Commenting on today's announcement, Christine Brockwell, Head of Partnerships & Portfolio Management at Aquila Capital, the investment adviser: "Ourique is an excellent addition to AERIF's portfolio and will directly contribute to its dividend cover. With this investment, the Company has again proven its ability to allocate funds prudently, within a short time frame."

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, 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