Innergex Announces the Acquisition of a 50.6 MW Solar Farm in Chile

LONGUEUIL, QC, Jan. 28, 2022 /CNW/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") announces the acquisition of the 50.6 MW San Andrés solar farm located in the Atacama desert in Northern Chile for a total purchase price of US$25.7 million (CAN$32.7 million), net of cash. The facility, which operates on a merchant basis, has a contract to sell Non-Conventional Renewable Energy ("NCRE") credits linked to its electricity generation to a major energy producer established in Chile until 2034.

"Through this transaction, Innergex is continuing to implement its growth in Chile," said Michel Letellier, President and Chief Executive Officer of Innergex. "The acquisition of San Andrés will bring operational synergies possibilities with our Salvador solar facility located in the region. In addition, San Andrés has the potential for the development of a battery energy storage system and, since the connection to the grid is robust, it also offers opportunities for future expansions."

Becoming Innergex's third solar facility in Chile, San Andrés is expected to produce a gross estimated long-term average of 118.9 GWh per year. The facility is expected to reach targeted Revenues¹ of US$5.5 million (CAN$7.0 million) in its first full year, of which US$1.3 million (CAN$1.7 million) is derived from the sale of the NCRE of the facility under contract until 2034 and US$0.8 million (CAN$1.0 million) from the capacity payment.

The total purchase price of US$25.7 million (CAN$32.7million) net of cash, which is equivalent to the enterprise value as the project is free of debt, was fully financed with cash on hand in Chile and corporate revolving credit facility draws.

About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 80 operating facilities with an aggregate net installed capacity of 3,152 MW (gross 3,852 MW) and an energy storage capacity of 150 MWh, including 40 hydroelectric facilities, 32 wind farms and 8 solar farms. Innergex also holds interests in 9 projects under development, two of which are under construction, with a net installed capacity of 171 MW (gross 209 MW) and an energy storage capacity of 329 MWh, as well as prospective projects at different stages of development with an aggregate gross capacity totaling 7,281 MW. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.

Cautionary Statement Regarding Forward-Looking Information
To inform readers of the Corporation's future prospects, this press release contains forward-looking information within the meaning of applicable securities laws ("Forward-Looking Information"), including the Corporation's targeted financial performance, project acquisitions, and strategic, operational and financial benefits and accretion expected to result from such acquisitions, business strategy, future development and growth prospects  and strategic priorities, and other statements that are not historical facts. Forward-Looking Information can generally be identified by the use of words such as "approximately", "may", "will", "could", "believes", "expects", "intends", "should", "would", "plans", "potential", "project", "anticipates", "estimates", "scheduled" or "forecasts", or other comparable terms that state that certain events will or will not occur. It represents the projections and expectations of the Corporation relating to future events or results as of the date of this press release.

Forward-Looking Information includes future-oriented financial information or financial outlook within the meaning of securities laws for both IFRS and non-IFRS measures, including information regarding the Corporation's gross estimated long-term average production and targeted Revenues and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of expected results, and of the potential financial impact of completed and future acquisitions. Such information may not be appropriate for other purposes.

Forward-looking Information is based on certain key assumptions made by Innergex, including, without restrictions, assumptions concerning project performance, contractual revenues and electricity merchant prices. Although Innergex believes that the expectations and assumptions on which such forward-looking information is based are reasonable, under the current circumstances, readers are cautioned not to rely unduly on this forward-looking information as no assurance can be given that they will prove to be correct. The forward-looking information contained in this press release is made as of the date hereof and Innergex does not undertake any obligation to update or revise any forward-looking information, whether as a result of events or circumstances occurring after the date hereof, unless so required by law.

For more information on the risks and uncertainties that may cause actual results or performance to be materially different from those expressed, implied or presented by the forward-looking information or on the principal assumptions used to derive this information, please refer to the "Forward-Looking Information" section of the Management's Discussion and Analysis for the three- and nine-month periods ended September 30, 2021.

SOURCE Innergex Renewable Energy Inc.