TABLE OF CONTENTS TABLE OF CONTENTS .................................................................. 2 Solar Farm Located in Ontario ............................................... 25 INTRODUCTION .......................................................................... 3 Solar Farm Located in the United States ............................... 25 CAUTIONARY STATEMENT ON FORWARD-LOOKING OPERATING GEOTHERMAL POWER FACILITIES...................................... 25 Geothermal Power Facilities Located in Iceland .................... 25 INFORMATION ........................................................................... 3 DEVELOPMENT PROJECTS ................................................................ 26 CORPORATE STRUCTURE ............................................................ 5 Hydroelectric Development Project ....................................... 26 GENERAL DEVELOPMENT OF THE BUSINESS ............................... 5 Wind Development Project .................................................... 27 RECENT DEVELOPMENTS ................................................................... 6 PROSPECTIVE PROJECTS .................................................................. 27 THREE-YEAR SUMMARY .................................................................... 6 INTANGIBLE ASSETS ........................................................................ 27 Financial Year 2017 ................................................................. 6 FINANCIAL AND OPERATIONAL EFFECTS OF ENVIRONMENTAL Financial Year 2016 ................................................................. 8 PROTECTION REQUIREMENTS ........................................................... 27 Financial Year 2015 ................................................................. 9 EMPLOYEES .................................................................................. 28 INDUSTRY OVERVIEW AND MARKET TRENDS ........................... 10 SOCIAL AND ENVIRONMENTAL PROTECTION POLICIES ........................... 28 RENEWABLE POWER GENERATION INDUSTRY ...................................... 10 RISK FACTORS ........................................................................... 29 RENEWABLE POWER IN CANADA ...................................................... 11 DIVIDENDS ................................................................................ 39 RENEWABLE POWER IN THE UNITED STATES ....................................... 11 DESCRIPTION OF CAPITAL STRUCTURE ...................................... 40 RENEWABLE POWER IN FRANCE ....................................................... 12 GENERAL DESCRIPTION OF CAPITAL STRUCTURE ................................... 40 RENEWABLE POWER IN SOME OTHER MARKETS .................................. 12 Common Shares ..................................................................... 40 REGULATORY FRAMEWORK OF AND MARKET FOR RENEWABLE POWER Preferred Shares .................................................................... 41 IN THE CORPORATION’S KEY MARKETS .............................................. 12 Series A Shares and Series B Shares....................................... 41 Québec .................................................................................. 12 Series C Shares ....................................................................... 42 British Columbia .................................................................... 13 4.25% Convertible Debentures .............................................. 42 Ontario .................................................................................. 13 RATINGS ...................................................................................... 43 France ................................................................................... 13 United-States ........................................................................ 13 MARKET FOR SECURITIES .......................................................... 44 Iceland ................................................................................... 14 COMMON SHARES ......................................................................... 44 METHOD OF PRODUCTION .............................................................. 14 SERIES A SHARES ........................................................................... 44 Hydroelectric Power Generating Process .............................. 14 SERIES C SHARES ........................................................................... 44 Wind Power Generating Process ........................................... 14 4.25% CONVERTIBLE DEBENTURES ................................................... 44 Solar Photovoltaic Power Generating Process ...................... 14 DIRECTORS AND EXECUTIVE OFFICERS ...................................... 45 Geothermal Power Generating Process ................................ 14 DIRECTORS ................................................................................... 45 FACTORS AFFECTING RENEWABLE ELECTRICITY PRODUCTION EXECUTIVE OFFICERS ...................................................................... 46 PERFORMANCE ............................................................................. 15 BANKRUPTCY, INSOLVENCY, CEASE TRADE ORDER AND PENALTIES .......... 46 COMPETITIVE CONDITIONS .............................................................. 15 CONFLICTS OF INTEREST ........................................................... 47 ECONOMIC DEPENDENCE ................................................................ 16 LEGAL PROCEEDINGS AND REGULATORY ACTIONS ................... 47 SEASONALITY AND CYCLICALITY ........................................................ 16 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL DESCRIPTION OF THE BUSINESS AND ASSETS OF THE TRANSACTIONS ......................................................................... 48 CORPORATION ......................................................................... 17 TRANSFER AGENT AND REGISTRAR ........................................... 48 GENERAL OVERVIEW - SEGMENT INFORMATION .................................. 17 MATERIAL CONTRACTS ............................................................. 48 PORTFOLIO OF ASSETS .................................................................... 18 OPERATING FACILITIES .................................................................... 18 INTEREST OF EXPERTS ............................................................... 49 OPERATING HYDROELECTRIC FACILITIES ............................................. 19 AUDIT COMMITTEE DISCLOSURE .............................................. 49 Hydroelectric Facilities Located in Québec ............................ 19 ADDITIONAL INFORMATION ..................................................... 50 Hydroelectric Facilities Located in Ontario ........................... 20 GLOSSARY OF TERMS ................................................................ 51 Hydroelectric Facilities Located in British Columbia ............. 21 SCHEDULE A .............................................................................. 54 Hydroelectric Facility located in Idaho, United States .......... 22 CORPORATE STRUCTURE .......................................................... 54 OPERATING WIND FARMS ............................................................... 23 Wind Farms Located in Québec ............................................ 23 SCHEDULE B .............................................................................. 56 Wind Farm Located in British Columbia ................................ 23 CHARTER OF THE AUDIT COMMITTEE ....................................... 56 Wind Farms Located in France .............................................. 24 Wind Farm Located in the United States .............................. 24 OPERATING SOLAR FARM ................................................................ 25 Innergex Renewable Energy Inc. Annual Information Form 2017 p2 INTRODUCTION The information set out in this Annual Information Form is stated as at December 31, 2017 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 using 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