14 September 2022

GRESHAM HOUSE RENEWABLE ENERGY VCT 1 PLC

(the "Company", the "VCT")

Update on Sale of Solar Assets

The Board is pleased to report that it is anticipated that there will be a significant rise in the Net Asset Value attributable to the shares of both Gresham House Renewable VCT 1 and Gresham House Renewable VCT 2 as a result of the recent surge in, and longer term outlook for, power prices. Higher expectations for inflation have also had a positive impact on the Net Asset Value of the assets. In addition, following remedial works the assets have performed well over the summer months leading to higher revenues than in recent years.  Full details will be released in the Annual Report for the year ending September 2022. 

Should high inflation be sustained for the longer term and/or the security of gas supply from Russia remain the key factor in European energy markets leading to continued high power prices, it is the Investment Adviser's view that the value of these assets will remain at a higher level and may increase further. The Investment Adviser is also aware that there could be other changes to general taxation and to the remuneration regime for renewables that could also affect value.

These favourable developments have made the task of completing a sales process challenging. The VCTs entered an exclusivity deal with a potential buyer which expired without completion on 12 September, as pricing to reflect the current market movements has not been agreed. The Board, working with the Investment Adviser, will continue to make best efforts to achieve a sale as soon as possible, whilst taking into account the overriding requirement to achieve fair value for shareholders. This will need engagement with other potential buyers.  Hence it will be some time before the completion of any sale.

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LEI: 213800IVQHJXUQBAAC06