Investment Update

March 23rd, 2020

Aquila European Renewables Income Fund acquires third Danish wind project

Aquila European Renewables Income Fund ("AERIF" or "the Company"), the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbh, has today announced that it intends to increase its existing investment in Svindbaek Vindkraft HoldCo ApS ("Svindbaek") by acquiring three additional wind turbines ("Svindbaek II") for a total consideration of approx. EUR 13.2 million. The acquisition of Svindbaek II completes the acquisition of all wind turbines associated with the Svindbaek wind farm.

The new investment provides for 9.6 MW of installed capacity and has been operating since 2018. The Project benefits from a Danish premium tariff (feed-in premium structured as a 'contract for difference') for a fixed volume of production which is expected to last for approximately 9 years.

Svindbaek II helps to save 6,562 tons of CO² emissions per annum, saving an estimated 157,482 tons over the projected lifetime of the asset. Upon completion of this deal, the Company will have invested approximately 63.1% and committed another 18.9% of its total proceeds (EUR 194.3 million).

Ian Nolan, Chairman of the Company, said:

"The Board is pleased that the Company has already been able to start deploying capital from its recently placed equity issuance. Svindbaek II is an operating wind farm that will immediately contribute to the investors' dividend cover."

Commenting on today's announcement, Christine Brockwell, Head of Partnerships & Portfolio Management at Aquila Capital, the Investment Adviser, said: "The first quarter of 2020 has been very positive for AERIF. We successfully completed our EUR 40 million equity issuance and within a couple of weeks were able to deploy EUR 13.2 million into the high quality Svindbaek II project. The acquisition of this asset underpins the Company's ability to generate a strong dividend yield and reinforces our investment proposition."

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NOTES

Aquila European Renewables Income Fund ("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 an aggregate annual yield of 5.0% once fully invested.

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