Annual Information Form

INNERGEX RENEWABLE ENERGY INC. ANNUAL INFORMATION FORM FOR THE YEAR ENDED DECEMBER 31, 2015 MARCH 28, 2016 TABLE OF CONTENTS INTRODUCTION .......................................................................... 3 Big Silver Creek Project (BC – 100 % ownership) .......... 30 CAUTIONARY STATEMENT ON FORWARD-LOOKING WIND DEVELOPMENT PROJECT ............................................... 31 INFORMATION ............................................................................ 3 Mesgi’g Ugju’s’n (MU) Project (QC - 50% ownership) .... 31 CORPORATE STRUCTURE ....................................................... 5 PROSPECTIVE PROJECTS ....................................................... 31 GENERAL DEVELOPMENT OF THE BUSINESS ...................... 5 RECENT DEVELOPMENTS .......................................................... 6 Various Other Creek Power Prospective Projects (BC – THREE-YEAR SUMMARY ........................................................... 7 66.67% ownership) ......................................................... 31 Financial Year 2015 .......................................................... 7 Various Other Prospective Québec Wind Projects (QC – 50-100% ownership) ............................................ 31 Financial Year 2014 .......................................................... 8 Prospective Ontario Projects Financial Year 2013 .......................................................... 9 (ON - 49-100% ownership) ............................................. 31 INDUSTRY OVERVIEW AND MARKET TRENDS .................... 10 Other Prospective British Columbia Wind Projects RENEWABLE POWER GENERATION INDUSTRY ........................... 10 (BC - 100% ownership) ................................................... 32 RENEWABLE POWER IN CANADA .............................................. 10 RENEWABLE POWER IN SOME OTHER MARKETS ........................ 11 Various Other Prospective British Columbia Hydro REGULATORY FRAMEWORK OF AND MARKET FOR RENEWABLE Projects (BC - 100% ownership) ..................................... 32 POWER IN THE CORPORATION’S KEY MARKETS ......................... 12 Other Prospective Québec Hydro Projects (QC – 48% Québec............................................................................ 12 ownership) ...................................................................... 32 British Columbia .............................................................. 13 INTANGIBLE ASSETS ............................................................... 32 FINANCIAL AND OPERATIONAL EFFECTS OF ENVIRONMENTAL Ontario ............................................................................ 13 PROTECTION REQUIREMENTS ................................................. 32 METHOD OF PRODUCTION ....................................................... 14 EMPLOYEES .......................................................................... 32 Hydroelectric Power Generating Process ........................ 14 SOCIAL AND ENVIRONMENTAL PROTECTION POLICIES ............... 33 Wind Power Generating Process .................................... 14 RISK FACTORS ........................................................................ 34 Solar Photovoltaïc Power Generating Process ............... 15 DIVIDENDS ............................................................................... 41 FACTORS AFFECTING RENEWABLE ELECTRICITY PRODUCTION DESCRIPTION OF CAPITAL STRUCTURE ............................. 43 GENERAL DESCRIPTION OF CAPITAL STRUCTURE ..................... 43 PERFORMANCE ...................................................................... 16 RATINGS ............................................................................... 46 COMPETITIVE CONDITIONS ...................................................... 16 MARKET FOR SECURITIES..................................................... 47 ECONOMIC DEPENDENCE ........................................................ 17 COMMON SHARES ................................................................. 47 SEASONALITY AND CYCLICALITY .............................................. 17 DESCRIPTION OF THE BUSINESS AND ASSETS OF THE 5.75% CONVERTIBLE DEBENTURES ........................................ 47 SERIES A SHARES ................................................................. 47 CORPORATION ........................................................................ 18 SERIES C SHARES ................................................................. 47 GENERAL OVERVIEW - SEGMENT INFORMATION ........................ 18 4.25% CONVERTIBLE DEBENTURES ........................................ 48 PORTFOLIO OF ASSETS ........................................................... 18 DIRECTORS AND EXECUTIVE OFFICERS ............................. 48 OPERATING FACILITIES ........................................................... 19 DIRECTORS ........................................................................... 48 OPERATING HYDROELECTRIC FACILITIES .................................. 20 BANKRUPTCY, INSOLVENCY, CEASE TRADE ORDER AND Hydroelectric Facilities Located in Québec ..................... 20 PENALTIES ............................................................................ 50 Hydroelectric Facilities Located in Ontario ...................... 22 CONFLICTS OF INTEREST ...................................................... 50 Hydroelectric Facilities Located in British Columbia ........ 23 LEGAL PROCEEDINGS AND REGULATORY ACTIONS ....... 50 Hydroelectric Facility located in Idaho, USA .................... 26 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL OPERATING WIND FARMS ....................................................... 26 TRANSACTIONS ...................................................................... 51 TRANSFER AGENT AND REGISTRAR ................................... 51 Wind Farms Located in Québec ...................................... 26 MATERIAL CONTRACTS ......................................................... 51 OPERATING SOLAR FARM ....................................................... 27 INTEREST OF EXPERTS ......................................................... 51 Solar Farm Located in Ontario ........................................ 27 AUDIT COMMITTEE DISCLOSURE ......................................... 51 DEVELOPMENT PROJECTS ...................................................... 28 ADDITIONAL INFORMATION ................................................... 52 HYDROELECTRIC DEVELOPMENT PROJECTS ............................. 28 GLOSSARY OF TERMS ........................................................... 53 Boulder Creek Project (BC - 66.67% ownership) ............ 28 SCHEDULE A – CORPORATE STRUCTURE Upper Lillooet River Project (BC - 66.67% ownership) .... 29 SCHEDULE B – CHARTER OF THE AUDIT COMMITTEE _____________________________________________________________________________________________ Innergex Renewable Energy Inc. – 2015 Annual Information Form - 2 INTRODUCTION The information set out in this Annual Information Form is stated as at December 31, 2015 and all money-related amounts are stated in Canadian dollars, unless otherwise specified. Unless otherwise indicated or the context otherwise requires, all reference to the “Corporation”, to “Innergex, “we” “our” and “us” refers to Innergex Renewable Energy Inc. and its subsidiaries. Terms not otherwise defined have the meaning set forth in the “Glossary of Terms” included at the end of this document. CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION To inform readers of the Corporation's future prospects, this Annual Information Form contains forward-looking information within the meaning of applicable securities laws (“Forward-Looking Information”). Forward-Looking Information can generally be identified by the use of words such as “approximately”, “may”, “will”, "could", “believes", “expects", “intends”, "should", “plans”, “potential”, "project", “anticipates”, “estimates”, “scheduled” or “forecasts”, or other comparable terminology that state that certain events will or will not occur. It represents the projections and expectations of the Corporation relating to future events or results, as of the date of this Annual Information Form. Future-Oriented Financial Information: Forward-Looking Information includes future-oriented financial information or financial outlook within the meaning of securities laws, such as expected production and estimated project costs, to inform readers of the potential financial impact of expected results, of the expected commissioning of Development Projects and the Corporation’s ability to fund its growth. Such information may not be appropriate for other purposes. Assumptions: Forward-Looking Information is based on certain key assumptions made by the Corporation, including, without restriction, those concerning hydrology, wind regimes and solar irradiation, performance of operating facilities, financial market conditions and the Corporation’s success in developing new facilities. Risks and Uncertainties: Forward-Looking Information involves risks and uncertainties that may cause actual results or performance to be materially different from those expressed, implied or presented by the Forward-Looking Information. These are referred to in the “Risk Factors” section of this Annual Information Form and include, without limitation: the ability of the Corporation to execute its strategy for building shareholder value; its ability to raise additional capital and the state of the capital markets; liquidity risks related to derivative

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