The Rock Update

25 February 2022

Aquila European Renewables Income Fund plc

Update on The Rock - First Project Revenue Recorded as Energisation Continues

Aquila European Renewables Income Fund plc ("AERIF" or "the Company"), the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbH (the "Investment Adviser") is pleased to provide a further update on The Rock.

The Rock is expected to be one of the biggest wind farms in Europe with 400 MW capacity. The project is expected to provide 1.3 TWh renewable electricity annually, equivalent to approximately 412 kt of CO2 avoidance per annum[1]. AERIF acquired a 13.7% interest in The Rock in June 2020.

As announced on 10 December 2021, construction of The Rock is complete, with all 72 turbines now fully erected. Since then, works have been focused on the energisation of the turbines. Currently, a number of the turbines are already energised and as a result are producing electricity and revenue. Under the existing project contracts, The Rock project company is entitled to 50% of any revenue generated (AERIF look-through share: approximately 6.9%) from 1 January 2022 until the commercial operation date.

The commercial operations date for the project is expected to occur in Q2 2022 (previously, Q1 2022), largely driven by severe winter conditions, including low temperatures, heavy snowfall and high wind speeds (exceeding 40m/s in some instances) which have affected ongoing works on the site. Due to adverse weather conditions, the site has partly been closed in January and February, slowing down the process. In response to the weather, the commissioning teams are utilising specialised snow vehicles and have also committed additional resources to assist with snow removal. The work has resumed, however remains subject to ongoing weather conditions.

The Investment Adviser does not expect any material adverse impact on the project company's financial position or ability to service the Power Purchase Agreement ("PPA") as a result of the revised commercial operations date.

Once in operation, the majority of the power from the wind farm will go to the nearby Alcoa aluminum plant, a local cornerstone employer, which has signed a 15-year PPA. This guarantees opportunities for growth in the region and contributes to safeguarding hundreds of Norwegian jobs.

For further details contact: 

Media contacts: 

Edelman Smithfield

Ged Brumby | 020 3047 2527

Kanayo Agwunobi | 020 3047 2126

Sponsor, Broker and Placing Agent  

Numis Securities 020 7260 1000 

Tod Davis  

David Benda  

Vicki Paine  

LEI Number: 213800UKH1TZIC9ZRP41

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