• Adds its first wind project in British Columbia
• Increases the pipeline of projects under development by 33% to 308 MW
  net (451 MW gross)
• Contributes to cash flows by 2015

LONGUEUIL, QC, July 26, 2012 /CNW Telbec/ – Innergex Renewable Energy
Inc. (TSX: INE) (“Innergex” or the “Corporation”) announces that it has
entered into a definitive agreement with Finavera Wind
Energy (TSX-V: FVR) to acquire its Wildmare wind energy project located
in British Columbia, Canada.

The purchase price of this asset will be approximately $22.0 million,
subject to adjustments based on the realization of certain events and
milestones. Other than an initial advance of $1.0 million, there will
be no disbursement prior to closing, and payments will be spread over
several months. Innergex expects the transaction to close by the fall
of 2012, subject to regulatory approvals and other customary closing
conditions.

“This acquisition marks another milestone for Innergex, as we add our
first wind project in British Columbia and expand our wind energy
activities outside the province of Quebec“, states Michel Letellier,
President and Chief Executive Officer of Innergex. “We are expanding
our pipeline of projects under development with power purchase
agreements, in order to ensure a sustainable level of growth over the
long-term”, he adds.

Wildmare is a wholly-owned wind project located on Crown lands in the
Peace River region of British Columbia. All of the power produced will
be sold to BC Hydro under a 25-year power purchase agreement, which
provides for an annual adjustment to the selling price based on a
portion of the Consumer Price Index. Wildmare is expected to have a
total installed capacity of 77 MW, an estimated yearly energy output of
238,200 MWh, enough to power almost 24,000 BC households, and is
expected to produce revenues of approximately $28.0 million in its
first full year of operation. The Corporation believes that this
project, which is currently in the permitting phase, should reach
commercial operation in 2015, with construction lasting approximately
15 months. During the period prior to the closing of the transaction,
the Corporation and Finavera will work together to advance the project
through its environmental assessment process and to continue
consultation with Finavera’s First Nation partners. The total cost of
the project, including the consideration paid to acquire it, is
estimated to be $217.0 million, approximately two-thirds of which will
be financed with project-level debt and the balance financed with
equity.

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 26 operating facilities
with an aggregate net installed capacity of 494 MW (gross 880 MW),
including 20 hydroelectric operating facilities, five wind farms, and
one solar photovoltaic farm; (ii) interests in 9 projects under
development or under construction with an aggregate net installed
capacity of 231 MW (gross 374 MW), for which power purchase agreements
have been secured; and (iii) prospective projects with an aggregate net
capacity totaling 2,904 MW (gross 3,127 MW). 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.

Forward-Looking Information Disclaimer

This press release contains forward-looking information within the
meaning of securities legislation. All information and statements other
than statements of historical facts contained in this press release are
forward-looking information. Such statements and information may be
identified by looking for words such as “about”, “approximately”,
“may”, “believes”, “expects”, “will”, “intend”, “should”, “plan”,
“predict”, “potential”, “project”, “anticipate”, “estimate”, “continue”
or similar words or the negative thereof or other comparable
terminology. Such forward-looking information includes, without
limitation, statements with respect to the anticipated closing of the
transaction, benefits which may accrue to Innergex and its shareholders
as a result of the acquisition, commercial operation date, installed
capacity, the obtaining of required permits, average annual electricity
production, construction costs and timing, project financing, business
strategy, and plans and objectives of or involving Innergex.

The forward-looking information includes forward-looking financial
information or financial outlook, such as revenues, estimated
construction costs, and electricity production, to inform investors of
the potential financial impact of the acquisition on the Corporation’s
results. Such information may not be appropriate for other purposes.

The forward-looking information is based on certain key expectations and
assumptions made by Innergex as of the date of this press release,
including expectations and assumptions concerning satisfaction of all
conditions of closing, availability of capital resources, the obtaining
of required permits, construction costs and timing, commercial
operation date, and performance of the facility, as well as estimates,
forecasts and opinions of the Corporation. Although Innergex believes that the expectations and assumptions on
which such forward-looking information is based are reasonable, undue
reliance should not be placed on the forward-looking information since
no assurance can be given that they will prove to be correct. Actual
results could differ materially from those currently anticipated due to
a number of factors and risks. These include, but are not limited to,
failure to close the acquisition, potential undisclosed liabilities
associated with the acquisition, failure to realize the benefits of the
acquisition, design, development and construction of the new facility,
performance of third-party suppliers, and other risks generally
attributable to the business of Innergex. For additional information
with respect to risks and uncertainties, refer to the Annual
Information Form of Innergex filed on SEDAR’s website at www.sedar.com. The forward-looking information contained herein is made as of the
date of this press 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.

SOURCE INNERGEX RENEWABLE ENERGY INC.