Mr. Michel Letellier reports

INNERGEX Q1 2023

Innergex Renewable Energy Inc. has released its operating and financial results for the first quarter ended March 31, 2023. All amounts are in thousands of dollars, unless otherwise indicated.

The corporation was able to post revenue growth in the first quarter of 2023 despite exceptional unfavourable weather conditions impacting overall results and production mostly at hydro facilities in British Columbia and at the wind facilities in Quebec. Historical trends clearly demonstrate the singularity of the weather conditions experienced in the past few quarters in British Columbia, leading to the conclusion that better resource trends could be experienced again in the near future. In the meantime, the operations team continues to deploy initiatives to increase equipment availability and be more efficient in capturing all of the facilities' production potential. U.S. and Quebec hydro facilities posted solid production in the quarter, as did the French and U.S. wind facilities. Quarterly results were also positively impacted by the recent acquisition of three solar facilities in Northern Ontario in Q1 2023, which added 60 megawatts of installed capacity to Innergex's portfolio, as well as from the acquisition of the Aela wind facilities completed in second quarter 2022 in Chile. These acquisitions will support the corporation toward the financial growth objectives laid in its strategic plan.

The corporation's development activities continue to advance. In the United States, construction at the 330-megawatt Boswell Springs wind project in Wyoming progresses, and the conditions precedent to its 30-year power purchase agreement were met in the quarter. The Ohio Power Siting Board staff report of investigation approved the certificate of environmental compatibility and public need for the Palomino solar project. Three other large projects in the United States are at an advanced stage with promising outcomes in the states of Colorado, Texas and Washington. In Hawaii, the Hale Kuawehi project is awaiting the approval of the revised power purchase agreement by the Public Utility Commission, and the prospective 20-megawatt Kahana solar and battery energy storage project was sold in the second quarter of 2023, allowing the corporation to recoup its investment and potentially earning contingent payments, should the project reach certain milestones in the future. This transaction allowed Innergex to refocus its resources on its other projects in development. In Canada, the outlook is very promising for the industry, especially with the federal government's announcement to provide over $48-billion in support for clean electricity through investment tax credits (ITCs), options for low-cost financing, and targeted investments and programs. The projects lined up by Innergex are strong, and the teams are ready to submit them in future request for proposal (RFP) processes in Quebec and other provinces. During the quarter, the Mesgi'g Ugju's'n 2 (MU2) wind project was selected by Hydro-Quebec in an RFP, and signature of the power purchase agreement is expected in second quarter 2023. The Canadian market will remain a core market for Innergex, in which it intends to maintain a leadership position. After a few years of active development work in France, nine projects for a total of 226 megawatts are at an advanced development stage with high achievement probability. Finally, the Chilean team is focused on integrating recent acquisitions and advancing two battery energy storage projects expected to be commissioned by the end of the year. Development opportunities are still sought after as Innergex solidifies its independent power producer leadership position in the market.

"Innergex's strategy has always been to diversify activities and to focus on long-term performance, and we remain convinced more than ever that this approach is a guarantee of success. The diversity of our assets in terms of technology and geography, the long life of our power purchase agreements, and our understanding of the demand trend support our strategic approach and allow us to be confident in our future, despite the uncontrollable challenging weather conditions," said Michel Letellier, president and chief executive officer at Innergex. "As the markets open up in every region where we operate, and governments offer incentives to support the growth and competitiveness of renewable energy development, we are well positioned with our broad and deep range of prospective projects and expertise to seize opportunities and grow our portfolio of operating assets. The demand for renewable energy will continue to grow as the energy transition continues, and we will be there to help the world adopt greener solutions to address the climate crisis."

Recent developments

On Jan. 18, 2023, Innergex reached another milestone in the development of its 330-megawatt Boswell Springs wind project. The conditions precedent to the 30-year power purchase agreement with PacifiCorp were met. Total construction costs of the Boswell Springs wind project are expected to amount to $544-million (U.S.) ($728.2-million). The financing and tax equity investment process is progressing well, and on-site construction activities will ramp up in second quarter 2023.

On March 9, 2023, Innergex announced the closing of the acquisition of a 60-megawatt solar portfolio, consisting of three operating facilities in Sault Ste. Marie, Ont., for a purchase price of $51.3-million, along with the assumption of $164.3-million of existing debt.

On March 15, 2023, Innergex and Mi'gmawei Mawiomi Business Corp. announced that their 102-megawatt Mesgi'g Ugju's'n 2 wind project had been selected in Hydro-Quebec's request for proposals. Its commissioning is scheduled for 2026, and the power purchase agreement, to be concluded with Hydro-Quebec, is expected to be structured as a 30-year take-or-pay contract indexed to inflation. Project costs are estimated at approximately $277.4-million, which are expected to be financed with approximately 75 per cent to 80 per cent of long-term, non-recourse project debt. The remaining portion will be financed by sponsor equity to be shared equally among the partners.

Financial highlights

On Jan. 1, 2023, the corporation amended the presentation of its consolidated statements of earnings (refer to Section 7, Significant Accounting Policies, of management's discussion and analysis for the three months ended March 31, 2023, for more information). Concurrently, certain non-international financial reporting standard measures have been amended (refer to Section 5, Non-IFRS Measures, of the MD&A for more information).

Dividend declaration

Dividends will be paid by the corporation on July 17, 2023.

Additional information

Innergex's first quarter 2023 condensed interim consolidated financial statements, the notes thereto, and management's discussion and analysis can be obtained on SEDAR and in the investors section of the corporation's website.

Annual and special meeting of shareholders

The corporation will hold its annual and special meeting of shareholders in a virtual format on Tuesday, May 9, 2023, at 4 p.m. EDT. The meeting will be available by dialling 1-800-715-9871 or visiting the corporation's website. Only shareholders, through the webcast on-line, will be able to submit questions during the meeting.

Conference call and webcast

The corporation will hold a conference call and webcast on Wednesday, May 10, 2023, at 9 a.m. EDT. Investors and financial analysts are invited to listen to the conference by dialling 1-888-390-0605 or 416-764-8609 or or visiting the corporation's website. Journalists, as well as the public, can listen to this conference call on a listen mode only. A replay of the conference call will be available after the event on the corporation's website.

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 87 operating facilities with an aggregate net installed capacity of 3,696 megawatts (gross 4,245 megawatts) and an energy storage capacity of 159 megawatt-hours, including 40 hydroelectric facilities, 35 wind facilities, 11 solar facilities and one battery energy storage facility. Innergex also holds interests in 12 projects under development with a net installed capacity of 709 megawatts (gross 747 megawatts) and an energy storage capacity of 605 megawatt-hours, five of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 8,883 megawatts. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and distribute a stable dividend.

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