Half Year Trading Update

17 October 2012

Greenko Group plc

("Greenko" or "the Company")

Half Year Trading Update

Greenko, the Indian developer, owner and operator of clean energy projects, announces its trading update for the six months ended 30 September 2012.

The Company had a successful first half and remains on track for management's expectation of 30% full-year revenue growth, as well as the delivery of a 1,000 MW operating portfolio in 2015. The advantages of clean power in India continued to improve over the period, as wind and hydro power achieved grid parity with coal-fired generation, interest rates fell 0.5% and July's massive blackouts simultaneously exposed the scale of the country's power deficit and deprived one tenth of the world's population of electricity. Subsequent government initiatives to strengthen and extend the transmission grid, improve the credit quality of State Electricity Boards and renew the Generation Based Incentive (GBI) have further reinforced the inherent value of Greenko's portfolio.

Operating Projects

Hydropower is running well and the monsoon's late start was largely offset by its extension into October. The recently acquired 32 MW of run-of-river projects in Himachal Pradesh are performing well and have exceeded management's initial expectations. Biomass is operating in-line with expectations and, although it remains below the long-term target plant load factor (PLF), four of the six plants benefitted from modest increases in their power tariffs. LVS, the Company's gas plant, is operating in-line with expectations.

Over the period merchant power prices were unexpectedly robust, and the Company sold Renewable Energy Certificates (RECs) at approximately €25/MWh, as well as approximately half of the 346,300 carbon credits (CERs) on-hand at the year end. The remaining CER inventory should be sold this year. India's well publicised grid failure in July had no material impact on the Company's operating projects, as most of the problems occurred at the eastern end of the Northern Grid, away from Greenko's generating assets.

Projects in construction

Greenko's focussed development strategy has over 500 MW of projects in-construction. These remain on schedule and include three 100 MW utility scale wind power projects, plus six hydro projects totalling almost 200 MW. In addition to this, work should soon start on Greenko's fourth wind power cluster in Rajasthan. The significant projects under construction are:

·; Ratnagiri Wind Farm (100 MW - Maharashtra): the sub-station for the grid connection was completed with 120 MW of capacity. Two-thirds of the Phase-1 (65.6 MW) turbines are completing pre-commissioning trials and the first power was exported during the monsoon. The remaining Phase-1 turbines are expected to begin commissioning shortly. Phase-2 (35.2 MW) remains on schedule, with construction expected to start at the end of 2012, bringing the project to a capacity of 100.8 MW in late 2013. The project should deliver one of the best PLFs in the State and it has an attractive 15-year power purchase agreement (PPA) with a tariff of Rs5.69/kWh, plus the GBI once it is renewed.

·; Basvanbagewadi Wind Farm (100 MW - Karnataka): site work is underway and the sub-station for the grid connection is nearing completion. Phase-1 (51.2 MW) turbine components are due to start arriving on site this month and the project should begin commissioning in the current financial year. Phase-2 (49.6 MW) remains on track to start site preparation at the end of 2012, with commissioning in late 2013. The project should achieve an annualised 30+% PLF using the GE XLE technology.

·; Balavenkatpuram Wind Farm(100 MW - Andhra Pradesh): site access work is underway and all key permits are in place, along with the construction contracts. Phase-1 (51.2 MW) turbine components are expected to begin arriving on site around the end of 2012, with commissioning targeted to start in mid-2013. Phase-2 (49.6 MW) remains on track for the start of construction in late 2013. The project will use the GE XLE technology.

·; Dikchu Hydropower (96 MW - Sikkim): the project is progressing well and is now one third complete. It remains on time and on budget, despite the significant challenges caused by this year's flooding and landslides in Sikkim. The underground power house excavation is completed, the head race and pressure shaft tunnelling is on schedule, and project commissioning is still planned for late 2014.

·; Small Hydropower (92.6 MW - Karnataka and Himachal Pradesh): five small projects are under construction and on schedule for commissioning in 2014. Key permits and contracts are in place, site access work is underway, tunnelling at Paudital Lassa (24 MW) has started and construction of AMR-2's (10 MW) headrace and power house is scheduled to begin this month.

Projects in development

In addition to the projects already mentioned, Greenko has over 900 MW of projects in its pipeline that are fully permitted and under active development. The Company expects to start construction on approximately 400 MW of these projects during the next financial year.

The 49.5 MW Devgarh wind project in Rajasthan was promoted into the active development portfolio and should be commissioned in 2013. Greenko has been evaluating several projects in Rajasthan over the last four years and the recent significant increase in power tariff to Rs5.44/kWh brought Devgarh's development timeline forward. Anticipated annual generation is approximately 107 GWh and the project is expected to provide an attractive IRR for shareholders. Greenko's other wind project in Rajasthan (Jaisalmer - 100 MW) remains on track for construction to start in late-2013.

Greenko's generating portfolio strategy is designed around asset clusters that offer local economies of scale, as well as diversification by geography, off-take and technology. In this regard, while GE's wind turbines should provide the majority of Greenko's new wind capacity over the next few years, the Company considers it prudent to broaden and diversify its technology base. As such, the Devgarh project is likely to use the Vensys-82 1.5 MW gearless turbine, made by ReGen Powertech, which Greenko believes provides a capable alternative for the Indian market, as well as giving the Company diversification at an attractive price.

In hydro, Greenko continues a dual strategy of actively assessing potential acquisitions and new concession tenders that meet its risk-adjusted return threshold. As always, management remains highly selective and takes forward only the most attractive opportunities that complement the existing portfolio.

Corporate

Greenko strengthened its Board in August, with the appointment of Keith Henry, whose extensive experience in the global power and energy sectors includes running large private and publicly listed companies that successfully built major assets in developed and emerging markets. During his career, Keith was Chief Executive of National Power plc, a FTSE100 company, International Power, Brown & Root Ltd, and Kvaerner Engineering & Construction Ltd. This significant appointment reinforces the Company's commitment to the highest standards of corporate governance, as well as enhancing its existing capability as the roll-out of Greenko's utility scale clean energy projects accelerates across India.

Outlook

Greenko remains on track to more than double its current operational generating capacity by the end of 2013, as the first phase of construction is substantially completed at each of its four main wind clusters. These should take the total operating wind capacity to over 250 MW by the end of 2013. The associated equipment orders have been placed for all these projects, which also have the necessary equity and debt funding in place. The Company therefore remains comfortably on track for its 2015 operating target of 1,000 MW.

Anil Chalamalasetty, CEO and MD of Greenko, said: "We had a good first half and are now looking forward to seeing turbines up and running at our first three 100 MW wind farms. Progress in hydro has been particularly good and we continue to see exciting opportunities to increase shareholder returns. The Devgarh wind project is also a fine addition to our portfolio of projects in active development. Having evaluated ReGen's turbines over the last two years, Devgarh provides an appropriate opportunity for us to diversify our technology suppliers and launch our fourth major wind cluster in India."

-Ends-

For further information please visit www.greenkogroup.com or call:

Greenko Group plc

Anil Chalamalasetty +44 (0)20 7920 3150

Mahesh Kolli

Vasudeva Rao Kaipa

Mark Thompson

Arden Partners plc

Richard Day / Adrian Trimmings +44 (0)20 7614 5917

Tavistock Communications

Matt Ridsdale / Mike Bartlett +44 (0)20 7920 3150

About Greenko

Greenko is a mainstream participant in the growing Indian energy industry and a market leading owner and operator of clean energy projects in India. The Group is building a de-risked portfolio of wind, hydropower, natural gas and biomass assets within India and intends to increase the installed capacity it operates by winning concessions to develop new greenfield assets as well as making selective acquisitions which enhance shareholder value.

Greenko's portfolio is carefully planned and managed to ensure it offers investors diversification geographically and spreads risks across a number of projects which utilise varied environmental technologies. The Company's goal is to reach 1 GW of operational capacity in 2015.

With a core belief in sustainability both operationally and environmentally, Greenko endeavours to be a responsible business playing an important role in the community beyond its role in the power generation industry. The Company maintains a continuous involvement in localised projects and community programmes which centre on education, health and wellbeing, environmental stewardship and improving rural infrastructure.

Greenko Group plc was admitted to trading on the AIM market of the London Stock Exchange (LSE: GKO) in November 2007.