Greencoat Renewables EGM October 2022

The business of the EGM will be to consider proposed amendments to the Company’s Investment Policy (pursuant to the Resolution set out in the Notice of EGM (the “Resolution”)) to remove the percentage limits on the value of investments that the Company is permitted or required to make in wind energy assets or solar PV assets in Ireland and in Other Relevant Countries.

Under the current Investment Policy, investments by the Company in operational wind energy assets and wind energy assets under construction in Ireland must represent, in aggregate, not less than 60 per cent. of the Gross Asset Value (calculated immediately following each investment). The Company is further permitted to invest in aggregate, up to 40 per cent. of the Gross Asset Value (calculated immediately following each investment) in operational wind energy assets or operational solar PV assets in Ireland and Other Relevant Countries.

In light of the increasing scope in the acquisition pipeline across Continental Europe, the Board is proposing a change to the Investment Policy regarding the 40% limit on non-Ireland investments, in order to support the Company’s continued diversification in Europe, providing access to a wider set of opportunities. Given the accelerating opportunity in Continental Europe, a shareholder consultation process on a change to the current 40% limit on investments outside of Ireland was undertaken, to ensure that the Group is well placed to deliver on its growth potential with the full range of opportunities available in the market.

As noted in the Company’s interim report, the rationale for this proposed change is to support the Company’s continued diversification in Europe, providing access to a wider set of growth opportunities and to further our strategy of securing consistent cashflows and enhancing returns. In the 12 months to 30 June 2022, the Company added 281MW of net capacity outside of Ireland and 50MW of net capacity within Ireland, reflective of the scale of opportunities available to the Company across Continental Europe. Since its IPO in 2017, the Company has entered five European countries outside of Ireland (being France, Germany, Finland, Spain and Sweden), with the ability to scale demonstrated and a dedicated team of over 15 professionals focused on European opportunities in place added with in-country presence in Ireland, Germany and France.

As the portfolio has grown into new geographies, the business has benefitted from increased diversification both in terms of weather systems and power markets, with low correlation of wind speeds between Continental Europe and Ireland ensuring stability of cashflows in periods of lower regional wind resource. The Company continues to see excellent opportunities for continued diversification across geographies, technologies and pricing structures in both existing and new European markets and has an active pipeline of near-term acquisitions in Europe.

The portfolio continues to remain highly contracted with stable risk-adjusted returns in line with the investment strategy. The continued diversification in Europe enables the Company to seek the best returns while reducing exposure to local variations in renewable resource. Acquisitions in Europe have delivered risk adjusted returns in line with the Company’s Investment Policy and this is expected to continue as the Company grows further in Europe. As the largest owner of wind operating assets in Ireland, the Company will also continue to capitalise on its leading position to further consolidate an attractive growing market in Ireland.

The circular which includes the notice of the EGM (the “Circular”) and a Form of Proxy have been posted to shareholders today. The Board strongly urges shareholders to review the contents of the Circular in their entirety, including the documents referred to therein, and consider the Board’s recommendation to vote in favour of the Resolution.