Innergex delivers another year of solid growth in 2012


    --  Production increases 34% for the quarter, and 13% for the year
    --  Operating revenues increase 46% to $48.5M for the quarter, and
        22% to $180.9M for the year
    --  Adjusted EBITDA increases 63% to $35.5M for the quarter, and
        24% to $137.6M for the year
    --  Power generated reaches 98% of long-term average for the
        quarter and 97% of long-term average for the year
    --  Dividends paid to shareholders total $46.0M or $0.58 per share
        for the year
    --  Costs for projects under permit phase are revised before start
        of construction

LONGUEUIL, QC, March 14, 2013 /CNW Telbec/ - Innergex Renewable Energy Inc. 
(TSX:INE) ("Innergex" or the "Corporation") today released its operating and 
financial results for the fourth quarter and the year ended December31, 2012.

"2012 has been another year of significant milestones for Innergex, including 
the commissioning of our first solar farm, the advancement of our numerous 
projects under development, and the completion of the Gros-Morne wind farm, 
the largest in operation in Canada", declares Michel Letellier, President and 
Chief Executive Officer of the Corporation. "Our operating and financial 
performance attest to our expertise as both a developer and operator of 
renewable energy facilities, and to our diversification strategy, both in 
terms of geography and sources of renewable energy", adds Mr. Letellier.

OPERATING RESULTS
Amounts shown are in thousands of Canadian dollars except as noted otherwise.
                                  Three months          Twelve months 

For the periods ended                                      
December 31                  2012       2011       2012        2011
                                                                     

Power generated (MWh)      541,631    403,920   2,148,450   1,905,426

Long-term average (MWh)    555,024    465,134   2,222,643   1,884,531

Operating revenues          48,507     33,134     180,860     148,260

Adjusted EBITDA(1)          35,499     21,756     137,583     111,196

Net loss                     (595)   (21,002)     (5,383)    (43,704)

Net earnings (net loss), $                                 
per share(2)                  0.01     (0.18)      (0.03)      (0.59)

(1) Adjusted EBITDA is defined as operating revenues less operating
    expenses, general and administrative expenses and prospective
    project expenses.

(2) Net earnings (net loss) per share is calculated as net earnings
    (net loss) attributable to owners of the parent, less dividends
    declared on Series A preferred shares, divided by the weighted
    average number of common shares outstanding.
    Fourth Quarter Results

Electricity production of 541.6GWh was 2% lower than the long-term average; 
while water flows were favourable in Quebec and Ontario, they were slightly 
below normal in British Columbia. Also, the Corporation's wind farms performed 
below their long-term average due to poor wind and weather conditions. 
Production at the Stardale solar farm was in line with its long-term average.

Operating revenues and Adjusted EBITDA increased by 46% and 63%, respectively 
for the quarter, due mainly to higher production levels as a result of better 
water flows, whereas in the fourth quarter of 2011, production had fallen 
short of the long-term average due to weak hydrology, especially in British 
Columbia. The increase in revenues and Adjusted EBITDA during the quarter also 
results from the acquisition of the Brown Lake and Miller Creek hydroelectric 
facilities in British Columbia and the addition of the Stardale solar farm in 
Ontario and the Gros-Morne and Montagne Sèche wind farms in Quebec.

Most of the increase in EBITDA was absorbed by higher depreciation and 
amortization expenses and finance costs. Therefore, the reduction in net loss 
for the quarter is attributable mainly to an unrealized net gain on derivative 
financial instruments of $5.8 million, compared to an unrealized net loss of 
$19.6 million in 2011. Excluding these non-cash items and the related deferred 
provision for income taxes, net loss for the quarter would have been 
$4.9million (compared to a net loss of $6.7 million in 2011).

Twelve-Month Results

For the twelve-month period ended December31, 2012, electricity production 
reached 2,148GWh, or 97% of the long-term average of 2,223GWh, due mainly 
to low water flows in British Columbia in the first and fourth quarters and in 
Quebec and Ontario in the third quarter. The United States facility performed 
above its long-term average. Wind conditions were slightly lower than 
anticipated at all the wind farms except Montagne Sèche. Also, converters 
damaged in December 2011 after a load rejection event required that repairs be 
carried out at Phase I of the Gros-Morne wind farm early in 2012. The Stardale 
solar farm performed above its long-term average.

For the twelve-month period ended December31, 2012, operating revenues and 
Adjusted EBITDA increased 22% and 24%, respectively, due mainly to the 
additional revenues from the Stardale solar farm and the MontagneSèche and 
Gros-Morne wind farms. Additional revenues from the Harrison facilities 
acquired on April 4, 2011 and the Miller Creek and Brown Lake hydroelectric 
facilities acquired on October12, 2012, also contributed to this increase. 
These elements were partly offset by slightly lower production levels at the 
Quebec hydroelectric facilities.

Most of the increase in EBITDA was absorbed by higher depreciation and 
amortization expenses and finance costs. Therefore, the reduction in net loss 
for the twelve-month period is attributable mainly to an unrealized net gain 
on derivative financial instruments of $8.3 million, compared to an unrealized 
net loss of $61.5 million in 2011. The net loss for the period also reflects a 
realized loss on derivative financial instruments of $14.1 million related to 
the settlement of the Kwoiek Creek bond forwards. This loss is the result of a 
decrease in benchmark interest rates between the date the bond forwards were 
entered into and the settlement date, and is compensated by a lower fixed rate 
on the 39-year term loan for the Kwoiek Creek project. Bond forwards served to 
protect the economic value of the project until financing was put in place. 
Excluding these items and the related deferred income tax recoveries, net 
loss for the twelve-month period would have been $1.1million (compared 
to earnings of $1.2 million in 2011). This is mainly due to a higher 
provision for income taxes in 2012, compared to 2011.

Cash Flows from Operating Activities

For the year ended December 31, 2012, cash flows generated by operating 
activities totalled $62.2 million (compared to $43.4million in 2011). This 
increase is due primarily to a $26.4 million increase in Adjusted EBITDA and a 
$24.0 million increase in changes in non-cash operating working capital items, 
partly offset by a $15.3 million increase in interest paid and the 
$14.1million realized loss on derivative financial instruments recorded in 
the third quarter.

DEVELOPMENT PROJECTS

Kwoiek Creek Hydroelectric Facility
The construction of this hydroelectric facility began in the last quarter of 
2011. By the end of 2012, the powerhouse steel superstructure was completed; 
the intake construction was still under way; and the transmission line 
construction and penstock installation were ongoing. Current activities also 
include assembly and installation of the turbines and generators. The fish 
habitat compensation channel construction has been halted for the winter 
period and will resume in the spring of 2013. Construction of this 50.0 MW 
facility is progressing as scheduled and budgeted and is expected to be 
completed in the last quarter of 2013.

Northwest Stave River Hydroelectric Facility
The construction of this hydroelectric facility began in the last quarter of 
2011. By the end of 2012, all civil works at the powerhouse was nearly 
completed and the river diversion was completed. As planned, construction 
activities have been halted for the winter period; they will resume in the 
spring of 2013. Construction of this 17.5 MW facility is progressing as 
scheduled and budgeted and is expected to be completed in the last quarter of 
2013.

Viger-Denonville Wind Farm
The government decree authorizing the project and the Certificate of 
Authorization for wood clearing were received in January 2013. The 
engineering, procurement and construction contract has been executed and the 
relevant permits and Certificate of Authorization for the construction have 
been received. Current activities include wood clearing, road construction, 
and site mobilization. Construction of this 24.6 MW facility is expected to be 
completed in the last quarter of 2013.

Boulder Creek, North Creek, and Upper Lillooet Hydroelectric Facilities 
In January 2013, an important milestone was reached when these projects 
received their Environmental Assessment Certificate from the province of 
British Columbia. Current activities include ongoing consultation with 
stakeholders and applications for obtaining the relevant permits. Proposals 
from civil works contractors, turbine and generator suppliers and transmission 
line contractors were received at the beginning of 2013. In light of these 
proposals, the Corporation has elected, as allowed pursuant to the projects' 
power purchase agreement and permits, to increase the installed capacity of 
the Upper Lillooet project from 74.0 MW to 81.4 MW and of the Boulder Creek 
project from 23.0 MW to 25.3 MW. Annual electricity generation for the two 
projects has also increased, from 355.9 GWh to 426.5 GWh. However, subject to 
B.C. Hydro's consent, the North Creek project will be cancelled.

As a result, total installed capacity for this cluster of projects decreases 
5.6% to 106.7 MW, but annual electricity generation increases 2.6% from 415.6 
GWh to 426.5GWh. In aggregate, total project costs are expected to increase 
by $14.1 million, or 3.3%, and will be shared between two larger projects 
instead of three. The increase in costs is due mainly to higher than expected 
civil engineering and logistics costs, as well as the return to a provincial 
sales tax system. The Corporation believes this new configuration is 
economically more attractive and entails lesser environmental, construction 
and financing risks, and makes the projects easier and less expensive to 
operate.

The Corporation still expects to start construction on the Boulder Creek and 
Upper Lillooet projects in 2013 and meet their original expected commercial 
operation dates. Furthermore, the Corporation intends to continue advancing a 
revised version of the North Creek project in view of a future request for 
proposals.

Tretheway Creek Hydroelectric Facility
As of early March 2013, the turbine supplier had been selected and preliminary 
engineering was ongoing. Current activities also include hydrometric 
monitoring, environmental studies, consultation with the various stakeholders 
and applications for obtaining the relevant permits. More detailed analysis 
of the hydrology has demonstrated lower water flows than initially expected in 
the river. In view of these findings, the Corporation anticipates that the 
installed capacity will be increased by 9.4% to 23.2 MW, as allowed pursuant 
to the project's power purchase agreement, in order for the expected annual 
electricity generation to remain constant at 81.9GWh.

Proposals from civil works contractors, turbine and generator suppliers, and 
transmission line contractors were received at the beginning of 2013. Total 
project costs are expected to increase by approximately $17.0million, or 
18.6%, as a result of greater installed capacity, higher than expected civil 
costs, and the return to a provincial sales tax system. The Corporation is 
actively pursuing different alternatives with the bidders to bridge the gap 
between the proposals and the original estimated project costs. The 
Corporation still expects to start construction on this project in 2013 and 
meet the original expected commercial operation date.

Big Silver-Shovel Creek Hydroelectric Facility
Current activities include hydrometric monitoring, consultation with the 
various stakeholders, applications for obtaining the relevant permits and 
preliminary engineering. As the Corporation indicated when the projects were 
acquired, it requested and received authorization to amend the PPA to exclude 
the Shovel Creek project and increase the installed capacity of the Big Silver 
Creek project by 10% to 40.6 MW. Despite the increased installed capacity, 
more detailed analysis of the hydrology has demonstrated lower water flows 
than initially expected, resulting in a 5% reduction in the expected annual 
electricity generation to 139.8GWh. Total project costs are expected to 
increase by approximately $26.4 million, or 16%, as a result of greater 
installed capacity, more expensive civil works regarding the transmission line 
(and especially the submarine cable), higher than expected tunnel and penstock 
costs, and the return to a provincial sales tax system. The Corporation is 
actively pursuing different alternatives to bridge the gap between the new and 
the original estimated project costs. Furthermore, the Corporation believes 
this new configuration is economically more attractive and entails fewer 
construction and financing risks, and makes the project easier and less 
expensive to operate.

The Corporation expects to start construction on this project in 2013 and meet 
the original expected commercial operation date. Furthermore, it intends to 
continue advancing a revised version of the Shovel Creek project in view of a 
future request for proposals.

ACQUISITIONS IN PROGRESS

Magpie hydroelectric facility in Quebec and other Hydromega assets
On July 26, 2012, the Corporation announced that it had signed a purchase and 
sale agreement to acquire from the Hydromega Group of Companies ("Hydromega") 
its 70% interest in the Magpie facility located in the Minganie Regional 
County Municipality (RCM), in northeastern Quebec. The Corporation also 
signed a letter of intent with Hydromega regarding the acquisition of its 
equity interest in six other sites, including one 30.5MW hydroelectric 
facility in Quebec, four hydroelectric projects under construction totaling 
22.0 MW in Ontario, and one 10.0 MW hydroelectric project under development 
also in Ontario, all of them with PPAs. Concurrently, Innergex entered into a 
$25million deposit agreement, which bears an interest rate of 7% annually 
and which is to be applied against the purchase price of any Hydromega asset, 
upon closing of the acquisition.

Magpie is a 40.6MW run-of-river hydroelectric facility with an estimated 
yearly energy output of 185,000MWh. All the power produced is sold to 
Hydro-Québec under a power purchase agreement maturing in 2032. In January 
2013, Hydromega finalized negotiations with the Minganie RCM, giving Hydromega 
essentially all the equity interest in Magpie, in exchange for which the 
Minganie RCM i) owns convertible debentures which entitle it to a 30% equity 
interest in the facility upon conversion of the debentures on January 1, 2025, 
and ii) receives additional annual royalties until the debenture is converted.

The final purchase price of Magpie will be $28.6million plus a working 
capital adjustment and the assumption of approximately $51.0million in 
fixed-rate project-level debt. In addition, from August 31, 2012 to the 
closing date of the acquisition, most of the net cash flows generated by 
Magpie will have accrued to the Corporation.

The acquisitions of Magpie and the other Hydromega assets have not yet closed 
due to a number of reasons, which include finalizing negotiations between 
Hydromega and the Minganie RCM and the obtainment of the required consent from 
Hydromega's senior lenders. It is now expected that the acquisition of 
Magpie will close concurrently with the acquisition of the other Hydromega 
assets, over the coming months.

The Corporation perceives the delays in closing these transactions as merely 
short-term setbacks, as it believes that Hydromega's operating facilities and 
projects under development are very high quality, long-term hydroelectric 
assets and that their acquisition will contribute positively to its operating 
performance and cash flow generation in the years to come.

EQUITY REQUIREMENT

The Corporation expects to finance the anticipated cost increase of 
$57.5million for the projects under permit phase partly with approximately 
$40.0million of additional project-level financings and partly with the 
additional equity contributions from its dividend reinvestment plan.

Furthermore, upon closing of the anticipated acquisition of the Hydromega 
assets, the Corporation expects to issue approximately $125million of common 
equity, including $75 million in payment to Hydromega shareholders, rather 
than make additional drawdowns on the revolving term credit facility.

DIVIDEND DECLARATION

Dividends to Preferred Shareholders
On March14, 2013, the Corporation declared a dividend of $0.3125 per Series 
A Preferred Share payable on April15, 2013, to Series A preferred 
shareholders of record at the close of business on March 28, 2013.

On March14, 2013, the Corporation declared a dividend of $0.4923 per Series 
C Preferred Share payable on April15, 2013, to Series C preferred 
shareholders of record at the close of business on March 28, 2013. This 
initial dividend reflects the dividend accruing since the closing date of the 
Series C Preferred Share offering of December 11, 2012.

Dividends to Common Shareholders
On March14, 2013, the Corporation declared a dividend of $0.1450 per common 
share payable on April15, 2013, to common shareholders of record at the 
close of business on March 28, 2013.

CONFERENCE CALL REMINDER

The Corporation will hold a conference call tomorrow, Friday March 15, 2013 at 
11:00 a.m. EDT. The fourth quarter and year-end results will be presented by 
Mr. Michel Letellier, President and Chief Executive Officer of Innergex and by 
Mr.JeanTrudel, Chief Investment Officer and Senior Vice President - 
Communications. Investors and financial analysts are invited to access the 
conference call by dialing 647427-7450 or 1888231-8191. Media and the 
public may also access this conference call, on a listen-only mode. A replay 
of the conference call will be available later the same day on the 
Corporation's website at www.innergex.com.

About Innergex Renewable Energy Inc.
Innergex Renewable Energy Inc. (TSX: INE) is a leading Canadian independent 
renewable power producer. Active since 1990, the Company develops, owns, and 
operates run-of-river hydroelectric facilities, wind farms, and solar 
photovoltaic farms and carries out its operations in Quebec, Ontario, British 
Columbia, and Idaho, USA. Its portfolio of assets currently consists of: 
(i)interests in 28 operating facilities with an aggregate net installed 
capacity of 577MW (gross 1,031MW), including 22 hydroelectric operating 
facilities, five wind farms, and one solar photovoltaic farm; (ii) interests 
in seven projects under development or under construction with an aggregate 
net installed capacity of 190MW (gross 263MW), for which power purchase 
agreements have been secured; and (iii) prospective projects with an aggregate 
net capacity totaling 2,900 MW (gross 3,125MW). Innergex Renewable Energy 
Inc. is rated BBB- by S&P and BBB (low) by DBRS.

The Corporation's strategy for building shareholder value is to develop or 
acquire high-quality facilities generating sustainable cash flows and 
providing a high return on invested capital, and to distribute a stable 
dividend.

Non-IFRS Measures Disclaimer

The consolidated financial statements for the three-month and twelve-month 
periods ended December31, 2012 have been prepared in accordance with 
International Financial Reporting Standards ("IFRS").

However, some measures referred to in this news release are not recognized 
measures under IFRS, and therefore may not be comparable to those presented by 
other issuers. Innergex believes that these indicators are important, as they 
provide management and the reader with additional information about its 
production and cash generation capabilities, and facilitate the comparison of 
results over different periods. Adjusted EBITDA is not a measure recognized by 
IFRS and has no standardized meaning prescribed by IFRS. References in this 
news release to "Adjusted EBITDA" are to operating revenues less operating 
expenses, general and administrative expenses and prospective project 
expenses. Investors are cautioned that these non-IFRS measures should not be 
construed as an alternative to net earnings as determined in accordance with 
IFRS.

Forward-Looking Information Disclaimer

In order to inform shareholders and potential investors about the 
Corporation's future prospects, this news release may contain forward-looking 
information within the meaning of securities legislation ("Forward-Looking 
Information"). Forward-Looking Information can generally be identified by the 
use of words and phrases, such as "about", "approximate", "potential", "may", 
"will", "estimate", "anticipate", "plans", "expects" or "does not expect", "is 
expected", "budget", "scheduled", "forecasts", "intends" or "believes", or 
variations of such words and phrases that state that certain events will 
occur. Such Forward-Looking Information includes, without limitation, 
statements with respect to the start or completion of the construction of any 
of the development projects, closing of the Magpie acquisition or of the other 
Hydromega assets.

The Forward-Looking Information includes forward-looking financial information 
or financial outlook, within the meaning of securities laws, such as projected 
revenues, projected construction costs, or approximate purchase price to 
inform investors and shareholders of the potential financial impact of 
recently announced acquisitions or expected results; such information may not 
be appropriate for other purposes.

Forward-Looking Information represents, as of the date of this news release, 
the estimates, forecasts, projections, expectations, or opinions of the 
Corporation relating to future events or results. Forward-looking Information 
involves known and unknown risks, uncertainties and other important factors, 
which may cause the actual results or performance to be materially different 
from any future results or performance expressed or implied by the Forward 
Looking Information. The material risks and uncertainties which may cause the 
actual results and developments to be materially different from the current 
expressed expectations in this news release include, without limitation: 
execution of strategy; capital resources; derivative financial instruments; 
availability of water flows, wind and sun light; delays and cost over-runs in 
the construction and design of projects; health, safety and environmental 
risks; development of new facilities; permits; project performance; equipment 
failure; interest rate and refinancing risk; financial leverage and 
restrictive covenants; declaration of dividends is at the discretion of the 
Board; securing new power purchase agreements; senior management and key 
employees; litigation; performance of major counterparties; relationship with 
stakeholders; equipment supply; regulatory and political; ability to secure 
appropriate land; reliance on power purchase agreements; reliance upon 
transmission systems; water rental expenses; assessment of water, wind and sun 
resources; dam safety; natural disasters; force majeure; foreign exchange; 
insurance limits; credit rating may not reflect actual performance of the 
Corporation; potential undisclosed liabilities associated with acquisitions; 
integration of the facilities and projects acquired and to be acquired; 
failure to realize acquisition benefits; failure to close the Magpie 
hydroelectric facility acquisition and to negotiate and close the acquisition 
of the other Hydromega hydroelectric facility and development projects; shared 
transmission and interconnection facilities; introduction to solar 
photovoltaic power facility operation; revenues from the Miller Creek facility 
based on the spot price of electricity. Although the Corporation believes that 
the expectations instigated by the Forward-Looking Information are based on 
reasonable and valid hypotheses, there is a risk that the Forward-looking 
Information may be incorrect. The reader is cautioned not to rely unduly on 
this Forward-Looking Information. The Forward-Looking Information expressed 
verbally or in writing, by the Corporation or by a person acting on its 
behalf, is expressly qualified by this cautionary statement. The 
Forward-Looking Information contained herein is made as of the date of this 
news release and the Corporation does not undertake any obligation to update 
or revise any Forward-Looking Information, whether as a result of events or 
circumstances occurring after the date hereof, unless required by legislation.

Jean Trudel, MBA Chief Investment Officer and Senior Vice President - 
Communications 450 928-2550, ext. 252,jtrudel@innergex.com  Marie-Josée 
Privyk, CFA, SIPC Director - Investor Relations 450 928-2550, ext. 
222,mjprivyk@innergex.com www.innergex.com

SOURCE: INNERGEX RENEWABLE ENERGY INC.

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CO: INNERGEX RENEWABLE ENERGY INC.
ST: Quebec
NI: UTI CONF DIV ERN 

-0- Mar/14/2013 22:01 GMT