Pre-close trading update

11 August 2014

Renewable Energy Generation Ltd

Pre-close trading update

Renewable Energy Generation Limited ("REG, the Group") (AIM: WIND) provides a pre-close trading update prior to the publication of its annual results on 13 October 2014.

Based on unaudited management information the Board expect Revenue and EBITDA before non-recurring and exceptional items for the year ended 30 June 2014 will be in-line with market expectations.

REG Windpower

Construction at St Breock (10MW) and Ramsey Extension (8MW) is underway with £21m of funding from ING secured. Turbine deliveries are expected in early 2015 for both sites.

The Court of Appeal decision to ratify planning permission for Denzell Downs (10MW) enables this project to join French Farm 1 (4MW), Rodbaston College (4MW) and Brackagh Quarry (6MW) in the procurement phase. All are expected to move into construction later in the Group's current financial year.

Significant progress has been made in the pace of consenting new wind projects with both French Farm 2 (8MW) and Hallburn (12MW) receiving local authority planning committee resolutions to grant consent during the period. The Group anticipates planning permission for both projects to be confirmed by the Secretary of State.

The Group also received planning permission for its single turbine project at Barlborough. The Group has completed the fully subscribed £1.5m debenture for its High Down project (0.5MW) using, for the first time, the Abundance Generation crowd funding platform. Following this success REG is considering how this approach may be expanded for future projects.

REG Bio-Power

Construction of the Group's Whitemoor (18MW) generation plant, fuelled by the patented bio-fuel LF100, is now well advanced and the project is expected to become operational under the National Grid's Short Term Operating Reserve (STOR) programme in September. Two further sites are in the planning system, with three further schemes expected to enter planning later this financial year. The Group's intention is to build at least 100MW of plant in the period to March 2017.

The Group's operating STOR plant has seen much stronger utilisation since commencing a new contract in April 2014.

Volumes in the Group's used cooking oil collection and aggregation business, Living Fuels, have grown by 72% year on year and oil collections and contracted volumes are at a level to service REG's expansion plans for this division.

REG Solar

In June 2014, the Group sold its first solar project, the 4.5MW Goonhilly Downs project, to BlackRock for a total consideration of £5.7m.

The Group has also signed three option agreements with Veolia UK to develop, build and operate solar projects on three restored landfill sites. The sites have an expected combined installed capacity of 60MW and planning applications have already been submitted for the three schemes. On successful planning permission, the schemes will be bid in to the new Contract for difference feed in tariff scheme recently established by the Government.

REG also has exclusive rights to assess the potential for development on a further seven Veolia sites.

Additionally, the Group will seek to maximise Solar PV opportunities available through existing land agreements outside its arrangement with Veolia.

Andrew Whalley, Chief Executive Officer, said:

"REG's in-house expertise in development, construction and operation of renewable energy infrastructure is well suited to expanding our project base.

"Our wind business has invested significant capital in submitting around 200MW of new wind projects into the UK planning system and the fruits of this are emerging through the delivery of energetic wind farms attractive to our strategic partner BlackRock.

"Our asset management business currently serves those assets sold to BlackRock, and from that base we expect to leverage our offering to other external parties.

"REG Bio-Power is now building REG's largest UK project in terms of installed capacity. With OFGEM warning consistently of capacity shortages we plan to have three new green generation plants online by Winter 2015 totalling 54MW of capacity. These will be among the lowest cost flexible generation providers in the UK.

"Our agreement with Veolia, alongside development prospects at wind farm sites with capacity to accommodate solar, provides a further excellent platform for diversification."

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Notes to editors

Renewable Energy Generation Ltd (REG) is an AIM listed renewable energy group. Its main business is the development, construction and operation of wind farms and generating power from refined used cooking oil.

REG Windpower: based in Truro, Bath and Guildford, UK, it currently operates 12 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total capacity of 34.7MW as well as 3 projects on behalf of its partner BlackRock totalling 28MW. REG has around 200MW of projects in the planning system awaiting a consent.

REG Bio-Power UK Ltd: based in Nottingham, UK: it operates electricity generation plant powered by fuel recovered from used cooking oil.

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

www.renewableenergygeneration.co.uk