Innergex Renewable Energy Inc. announces that the Mesgi'g Ugju's'n (MU) Wind Farm, L.P.  has obtained the government decree from the Quebec government for a 150 MW wind project located in the Gaspé Peninsula, in Quebec. This entity is controlled 50-50 by the three Mi'gmaq communities of Quebec – Gesgapegiag, Gespeg and Listuguj and by Innergex, which is also responsible for the management of the construction and the operation of the wind farm.

Obtainment of the decree marks the conclusion of the project's environmental approval process and gives the green light for construction to begin.

"Innergex and its partner, the Mi'gmaq communities of Quebec, have reached an important milestone in the development of this wind project and we look forward to beginning pre-construction activities soon" declares Michel Letellier, President and Chief Executive Officer of Innergex. "This project enjoys a very high degree of social acceptability, is being developed in compliance with environmental requirements, and will provide substantial economic benefits for our partners and value for our shareholders" adds Mr. Letellier.

The MU wind project is located on public lands in the Avignon Regional County Municipality in Quebec. The partners expect to begin pre-construction activities, such as wood clearing, in late 2014 and to begin construction in 2015. They further expect to begin commercial operation of the wind farm at the end of 2016. The cost of the project is currently estimated at approximately $365.0 million and will be financed in a proportion of at least 70% with non-recourse, fixed-rate project-level debt.

To this end, the partners have completed a hedging program to fix the base interest rate through the use of derivative financial instruments, until closing of the project-level financing. The wind farm is expected to have a long-term average annual production of approximately 515,000 MWh, enough to power more than 30,000 Quebec households each year. All of the electricity the facility will produce is covered by a 20-year fixed-price power purchase agreement with Hydro-Québec, which provides for an annual adjustment to the selling price based on a portion of the Consumer Price Index. In its first full year of operation, the MU wind farm is expected to generate revenues and Adjusted EBITDA of approximately $55.0 million and $45.0 million respectively.

Innergex Renewable Energy Inc.
www.innergex.com/en