New short-term power purchase agreement

15 July 2010

Renewable Energy Generation Ltd

New short-term power purchase agreement

Renewable Energy Generation Limited ("REG" or the "Company") (AIM: WIND), the UK renewable energy group, today announces that it has agreed an extension to its existing Power Purchase Agreements (PPAs) with Smartest Energy.

The extension covers output from the newly-acquired operating project at St Breock, the additional capacity being built at Goonhilly and the Company's development project at Loscar. The expected annualised total output subject to the extended PPA is approximately 30 GWh.

The new PPA is effective immediately and runs through to March 2011 and is thus harmonised with the expiry of the Company's existing output contracts. In due course REG expects to put in place longer-term PPAs enabling the Company to take advantage of attractive long term finance rates for wind power generation in the UK. Additionally, the new PPAs allow the Group to take advantage of sharply higher Winter 2010 electricity prices.

Commenting on developments, Andrew Whalley, Chief Executive Officer, said:

"The timely extension to our existing PPAs takes advantage of recent sharp rises in electricity prices and allows us to synchronise all of our PPAs across the Group.

"Later this year, we intend to refinance our operating portfolio at which point a longer term agreement will be put in place covering the Group's total wind power output. The implementation of long-term PPAs will facilitate project financing and free up capital for the development of our new projects as they progress through planning."

Ends

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Notes to Editors

Renewable Energy Generation Ltd (REG) is a UK orientated renewable energy group. The Group's main business is the development, construction and operation of wind farms in the UK and generating power from refined used cooking oil in the UK.

·; The Cornwall Light & Power Co. Ltd: based in Cornwall, UK, it currently operates eight wind projects in Cambridgeshire, Cornwall, County Durham, Cumbria and Gwynedd, with a total capacity of 26.25MW and has a development pipeline of around 350MW.

·; REG Bio-Power UK Ltd: based in Nottingham, UK: it operates electricity generation plant fuelled by waste vegetable oil.

Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).