Mr. Nick Blitterswyk reports

UGE ANNOUNCES Q2 2023 MILESTONES AND BUSINESS UPDATES

UGE International Ltd. has released milestones and business updates for the second quarter ending June 30, 2023.

Backlog approaches 100 MW (megawatts) annual growth goal

In the second quarter, UGE's project backlog (stages 3.1 to 5) increased 14 per cent to 356 MW from 313 MW at the end of the first quarter. Since the start of the year, the company's backlog has increased by 96 MW, marking near-achievement of its 2023 annual goal to add 100 MW to its backlog. UGE anticipates achieving and exceeding this goal during the third quarter, far ahead of schedule. The company's stage 3.0 development pipeline, which represents projects with site control secured but in earlier stages of development, also grew by 27 per cent in Q2, to 605 MW. As of June 30, 2023, UGE has a predevelopment pipeline (stages 1 and 2) of over two gigawatts as well.

During the quarter, UGE achieved the NTP (notice to proceed) milestone for two projects totalling 3.2 MW as the projects prepare for construction. The company has now reached NTP on 13.2 MW of projects in 2023. The notice to proceed milestone indicates that financing for the project has closed, and all necessary permits and interconnection approvals for the project are in place.

One of the projects to reach NTP is UGE's second 2.7 MW ground-mount solar farm in Oakland, Md. -- the first of the two projects reached NTP in March. After years of running a pilot community solar program, Maryland instated a permanent program this May, making it the 23rd U.S. state to implement a shared-access community solar framework without limitation to accessibility.

The other project to reach NTP during the quarter was a 548 kW (kilowatt) rooftop project, to be built atop a shopping mall on Staten Island, New York. This will be the third community solar project UGE owns and operates on Staten Island.

Both new projects will join UGE's low-to-moderate income (LMI) program, meaning that at least 30 per cent of the energy generated by the project will be reserved for LMI households. Strengthening renewable energy equity is one of UGE's guiding goals -- the company's stated target is for more than 25 per cent of the offtake from its operational portfolio to serve LMI households by 2026.

Deployment progresses, rooftop projects near completion

During the quarter, the company made significant progress on the construction of two rooftop projects totalling 1.8 MW. One of the projects, UGE's second in the town of Peekskill, N.Y., has all major equipment installed and is on schedule to reach commercial operation at the beginning of August. Another, a one MW project at Foxcroft Academy in Maine, is scheduled just to turn on just a few weeks later, at the end of August. Further deployment progress was made across an additional five projects -- four ground-mounts and one rooftop -- totalling 11.5 MW.

UGE completed its one MW community solar project in Norway, Me. Pending the utility installing the final meter required for interconnection, the project will reach official commercial operation imminently. The project, built atop a former landfill, will provide cheaper, cleaner electricity to the municipality and local small businesses in the area.

Strategic plan released

The company shared its corporate strategic plan for 2023 to 2026, presenting UGE's strategic pillars, corporate goals and how the company will measure its success against said goals. The strategic plan is available on-line.

About UGE International Ltd.

UGE develops, owns, and operates commercial and community solar and battery storage projects. Its distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront cost. With over 500 MW of global experience, the company works daily to power a more sustainable world.

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