(deep drilling rig at reykjanes: fall 2016)

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TSX : AXY www.alterrapower.ca Page | 1 2016 RESULTS CONFERENCE CALL 16 March 2017 (Deep drilling rig at Reykjanes: Fall 2016)

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Page 1: (Deep drilling rig at Reykjanes: Fall 2016)

TSX : AXY www.alterrapower.ca Page | 1 2 0 1 6 R E S U L T S C O N F E R E N C E C A L L 16 March 2017

(Deep drilling rig at Reykjanes: Fall 2016)

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Forward-Looking Information

Cautionary Note Regarding Forward Looking Information This presentation contains certain forward-looking information and statements and within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking information. Examples of such information in this presentation include, but are not limited to, statements with respect to future events or future performance, successful development, financing (including construction debt, tax equity and sponsor interest sales) and construction of our pre-operational projects and properties, Alterra Power Corp.'s (“Alterra”) successful acquisition from or partnership with the owners of projects currently owned by other developers, the success of Alterra's project acquisition, development and expansion programs and greenfield development efforts, all statements regarding the Company’s plans and expectations for the declaration of future dividends, including the timing and amount thereof, whether the wind development projects actually or ultimately qualify for all, or a portion of, the production tax credits, prospective generation, results of operations, and financial position, and the information found on the "Outlook" slide. These statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include, among others, the expected power generation from our operations, the success and timely completion of planned development, expansion and construction programs, and modeling and budgeting based on historical trends, whether Alterra's on-site and off-site early-stage construction activities will be sufficient to qualify the wind development projects for the full value of the PTCs; rules, regulation or other guidance may be promulgated pursuant to the Internal Revenue Code of 1986 (as the same may be amended, updated or otherwise modified from time to time) that could jeopardize or otherwise impede the effectiveness of such on-site and off-site early-stage construction activities qualifying such projects for the full value of the PTCs and securing tax equity financing on such basis, our use of proceeds from any equity financings is as currently forecasted, the expected timing for realizing the output capacity of the well, if any, due to the conceptual nature of the deep drilling preliminary output potential, the risk that there has been insufficient testing to define geothermal resource, assumptions concerning temperature and underground fluids, current conditions and expected future developments. Forward-looking statements and information also involve known and unknown risks that may cause actual results to differ materially from those expressed by such statements or information, and the Company has made assumptions and estimates based on or related to many of these factors. These risks include volatility of renewable energy resources, inherent risks in operating and constructing power plants and development programs related to the same, contractual risks related to credit facilities, partnership and power purchase agreements, prospective power, currency and commodity price fluctuations, the implementation of lower corporate tax rates may impede our ability to obtain sufficient amounts of tax equity investment or achieve desired economic returns, successful closing of the acquisition of certain of the wind development projects including without limitation successful completion of due diligence on such projects, negotiation of definitive purchase agreements, satisfaction or waiver of all conditions precedent thereto and the approval of Alterra's Board of Directors, future issuances of equity securities, health, safety, social and environmental risks and risks related to reliance on third parties. Additional risks, assumptions and influential factors are set out in the Company's management discussion analysis and Alterra's most recent annual information form, copies of which are available on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially, given the inherent uncertainties in such forward-looking statements and information, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against undue reliance on any such forward-looking statements or information, which apply only as of their dates. Other than as specifically required by law, Alterra undertakes no obligation to update any forward-looking statements or information to reflect new information.

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Agenda / Participants

• Ross Beaty

Executive Chairman

• John Carson

CEO

• Lynda Freeman

CFO

• Jay Sutton

VP Operations

• Paul Rapp

VP Development

• Murray Kroeker

VP Engineering & Safety

• John Carson

CEO

Introduction

Financials

Operations

– Re-Introduction of Team – Restatement of Mission – Looking Ahead

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• Consolidated revenue was $3.0 MM higher compared to prior year primarily due to strengthening of the Icelandic krona (ISK)

• Gross profit declined $4.1MM predominantly due to an increase in power purchases undertaken to mitigate the lower output from Reykjanes

• The decrease in equity income is primarily due to the recognition of a non-cash gain at Shannon related to the power hedge in 2015, partially offset by the part-year results of Jimmie Creek, and improved results from the Blue Lagoon

• Other income (expenses) improved by $41.7 MM due to increased aluminum prices driving up the value of the Company’s aluminum-linked contracts (“embedded derivatives”) and favourable exchange rates movements

• Adjusted EBITDA increased by $2.1 MM on a consolidated basis primarily due to the addition of the Shannon and Jimmie Creek projects, and improved results from the Blue Lagoon

2016 Annual Consolidated Results:

Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

Consolidated Results ($MM)

2016 2015

Revenue 60.8 57.8

Gross profit 12.0 16.1

Equity income from investments 14.7 22.1

Other income (expenses) (17.6) (59.3)

Income (loss) before tax 9.1 (21.1)

Adjusted EBITDA*

48.5 46.4

* Here and elsewhere, “Adjusted EBITDA" is a non-IFRS measure (refer to slide 27 for the "Cautionary Note Regarding Non-IFRS Measures”).

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• Generation increased 20% with the addition of the Shannon and Jimmie Creek projects, offsetting lower-than-expected generation at HS Orka, Dokie 1 and Toba Montrose (still above plan at 103%)

• Lower than average wind speeds affected much of North America (including Dokie and Shannon)

• Revenue increased 12% predominantly due to strengthening ISK and revenue from new projects (Shannon and Jimmie Creek)

• Adjusted EBITDA increased by 5% primarily due to the additions of the new Shannon and Jimmie Creek projects

2016 Annual Comparative Information (Net Interest)* ($000)

Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

For the year ended December 31, 2016

HS Orka (66.6%)

Toba Montrose

(40%) Dokie 1 (25.5%)

Shannon (50%)

Jimmie Creek (51%)

Development and head

office Total

Generation (MWh) 747,544 291,779 71,258 340,039 41,514 - 1,492,134

Revenue 40,517 22,383 6,299 6,049 4,886 - 80,134

Adjusted EBITDA 18,993 17,043 4,385 998 4,135 (6,567) 38,987

For the year ended December 31, 2015

HS Orka (66.6%)

Toba Montrose

(40%)

Dokie 1 (25.5%)

Shannon (50%)

Soda Lake (100%) (a)

Development and head

office

Total

Generation (MWh) 818,488 316,976 86,648 19,192 6,991 - 1,248,295

Revenue 38,219 24,738 7,906 273 449 - 71,585

Adjusted EBITDA 18,800 18,825 5,735 35 152 (6,564) 36,983

(a) The Soda Lake facility was sold on January 30, 2015

* Here and elsewhere, “Net Interest" is a non-IFRS measure (refer to Slide 27 for the "Cautionary Note Regarding Non-IFRS Measures”).

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Alterra Power 2016 Results Call

2016

Financials | Lynda Freeman, CFO

2016 Annual Comparative Information (Net Interest) 2015

150

300

450

600

750

900

HS Orka TobaMontrose

Dokie 1 Shannon Jimmie Creek

Production (GWh)

10.0

20.0

30.0

40.0

50.0

HS Orka TobaMontrose

Dokie 1 Shannon Jimmie Creek

Revenue

5.0

10.0

15.0

20.0

25.0

HS Orka TobaMontrose

Dokie 1 Shannon Jimmie Creek

EBITDA

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Balance Sheet Highlights (Consolidated Basis)

• Cash increased by $21.3 MM primarily due to funds raised from the October 2016 equity financing and operating earnings, offset by development spend, and repayment of loans and additions to plant & equipment at HS Orka

• Total assets increased $84.8 MM, reflecting the Flat Top acquisition and favorable movements in foreign exchange

• Current liabilities decreased by $53.7 MM as a result of refinancing and repayment of Icelandic bonds, with $72 million of bonds refinanced in the fourth quarter

• Working capital increased primarily due to refinancing and repayment of Icelandic bonds, partially offset by a $9.8 MM Flat Top contingent developer fee which is expected to be payable at financial close with proceeds from project financing, and capital and development projects expenditures

Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

Select Balance Sheet Statistics ($MM) December 31, 2016 December 31, 2015

Cash 31.6 10.3

Total assets 677.8 593.0

Total debt 252.6 255.5

Total liabilities 399.4 393.8

Net assets 278.4 199.2

Current assets 52.9 45.7

Current liabilities 115.2 168.9

Working capital

(62.3) (123.2)

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Icelandic bond summary (Sweden holding company)

• In July 2016, the Company extended the maturity of its ISK-denominated (Reykjanesbaer) bond by one year to July 2017, with interest rate revised to 5.0%. Refinancing discussions are ongoing

• In October the Company refinanced the $71.7 million bond held by Reykjavik Energy in two tranches;

- Tranche 1 ($36 million) which continues to be held by Reykjavik Energy

• Coupon revised to 5%, maturity extended to April 2018

- Tranche 2 ($35.7 million) held by the Company’s Chairman

• 8.5% coupon, matures October 2021

• In December 2016, the Company retired two smaller bonds held by Icelandic municipalities totaling $2.5 million.

As reported at December 31, 2016:

Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

Holding Company Bonds (Sweden) Reykjanesbaer

bond Reykjavik Energy

bond Chairman

bond

Balance ($000s) $59,994 $34,395 $34,993

Maturity July 16, 2017 April 15, 2018 October 23, 2021

Interest rate 5.0% 5.0% 8.5%

Number of shares of HS Orka pledged as security

996,821,339 1,332,991,163 1,176,168,674

% of outstanding HS Orka shares pledged as security

12.7% 17.0% 15.0%

Principal amount linkage to aluminum price

50% 50% 0%

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Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

Equity financing

• October, the Company completed two equity financings (a bought deal and concurrent private placement) under which it issued ~11.3 million shares at C$6.00 per share for net proceeds of C$65.6 million. Planned / actual spend is as follows:

Inaugural dividend paid

• The Company paid its first cash dividend (C$0.0125 per share) on December 15, 2016 • The second dividend (C$0.0125 per share) is expected to have been paid on or about March 15, 2017

(C$) Total planned spend

Total spend to December 31

Development and construction spend on Flat Top $27.9 MM $5.2 MM

Repayment of credit facility $12.0 MM $12.0 MM

PTC qualification spend on early stage USA wind development

$11.0 MM $0.9 MM

Development expenses and equity contributions for Spartan PV1

$2.7 MM $0.0 MM

General corporate $12.0 MM $6.6 MM

Total use of proceeds $65.6 MM $24.7 MM

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Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

• Alterra holds the following corporate debt:

— $129.4 MM Holding company bonds (Sweden)

— $ 64.6 MM Holding company loan (North America)

• $270.5 MM total non-recourse project debt includes:

— $ 28.3 MM Dokie 1

— $131.5 MM Toba Montrose

— $ 67.0 MM Jimmie Creek

— $ 39.0 MM HS Orka

— $ 4.7 MM Kokomo

• Debt service paid during the year: Principal paid

— $ 10.2 MM Toba Montrose $ 1.7 MM

— $ 3.0 MM Dokie 1 $ 0.9 MM

— $ 2.6 MM Jimmie Creek -

— $ 13.2 MM HS Orka $12.2 MM

— $ 6.9 MM NA Holdco -

— $ 2.9 MM Sweden Holdco $2.5 MM

— $ 13.6 MM Revolver $13.2 MM

• There is no debt associated with the Shannon project; however the project has certain requirements with respect to the allocation of cash distributions, taxable income (losses) and tax credits amongst the sponsor and tax equity investors

• See Appendix 1 for further information on long-term debt

Long Term Debt (net interest) at December 31

Alterra Power Corp.

NA Holdco (matures 2023)

$64.6 MM

Kokomo (matures 2026)

$4.7 MM

Sweden Holdco (matures

2017-2021)

$129.4 MM

Dokie 1 (matures 2030)

$28.3 MM

Toba Montrose (matures 2045)

$131.5 MM

HS Orka (matures 2017-

2031)

$39.0 MM

100% 100%

51% 66.6%

25.5%

40%

Holding Companies

Project Companies

Jimmie Creek (matures 2056)

$67.0 MM

93.8%

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• The Company is forecasting generation and Adjusted EBITDA to be up 7% and 26% respectively in 2017 (from 2016). The 2017 projections reflect a full year of generation and operating results from the existing eight operating projects

• The 2018 projections indicate a further increase in generation and Adjusted EBITDA of 28% and 15% respectively (from 2017 projections). The 2018 estimates reflect:

o the commencement of operations at Spartan PV 1 (Jan 2018) and Flat Top (April 2018)

o a projected increase in generation at Reykjanes through 2017 into 2018

• For key assumptions related to this section, see Management’s Discussion and Analysis for December 31, 2016

This section of this presentation provides management's generation, revenue and Adjusted EBITDA estimates for 2017 and 2018 on a net interest basis. The information and estimates contained within this section are “forward-looking statements” and “forward-looking financial information”, subject to the cautionary notes regarding the risks and assumptions associated with such statements discussed herein. Readers are cautioned that actual results may vary materially from the above noted forward-looking financial information.

Outlook:

Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

Net Interest Results ($MM)

2017 2018

Generation (GWh) 1,595 2,046

Total Revenue 90.7 100.7

Adjusted EBITDA

49.2 56.6

For 2017 and 2018, Management expects the Company to achieve (net interest):

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Operations | Jay Sutton, VP Operations

Alterra Power 2016 Results Call

Toba Montrose – Highlights

• Generation:

– Annual: 103% of plan (729.4 GWh)

– Quarterly: 96% of plan (78.6 GWh)

– YTD 2017: 39% of plan (6.5 GWh) through February

• 2016 availability to resource: 98.0%

• 2017 annual maintenance work ongoing at both plants during low flow period

• Snowpack currently trending on long-term average

Location: British Columbia

Capacity: 235 MW

Ownership: 40% Alterra

Runner grinding and polishing at East Toba (February 2017)

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Operations | Jay Sutton, VP Operations

Alterra Power 2016 Results Call

Location: British Columbia

Capacity: 62 MW

Ownership: 51% Alterra

Jimmie Creek nozzle rebuilds underway (January 2017)

Jimmie Creek - Highlights

• Generation:

– Annual: 110% of plan (81.4 GWh) from starting operations on August 1, 2016

– Quarterly: 126% of plan (16.6 GWh)

– YTD 2017: 144% of plan (1.3 GWh) through February

• Good first 5 months production relative to forecast

• 2016 availability to resource: 95.0%

• First year warranty and construction deficiency work underway in Q1

• One unit currently available to operate, second unit available in April when flows increase

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Operations | Paul Rapp, VP Development

Alterra Power 2016 Results Call

Location: Clay County, Texas

Capacity: 204 MW

Ownership: 50% Alterra

(sponsor equity)

Turbine Row C (January 2017)

Shannon – Highlights

• Generation:

– Annual: 86% of plan (680.1 GWh)

– Quarterly: 87% of plan (178.8 GWh)

– YTD 2017: 103% of plan (131.4 GWh) through February

• Regional low wind pattern in 2016 negatively affected generation

– Realized wind speed was 14% below the long-term normal wind speeds

• 2016 availability to resource: 98%

• Plant operating well with no equipment issues

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Operations | Paul Rapp, VP Development

Alterra Power 2016 Results Call

North America 2016 Wind Speed Performance

Source: AWS Truepower, a UL Company

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Operations | Paul Rapp, VP Development

Alterra Power 2016 Results Call

Location: British Columbia

Capacity: 144 MW

Ownership: 25.5% Alterra

Turbines on Johnson Ridge (January 2017)

Dokie – Highlights

• Generation:

– Annual: 84% of plan (279.4 GWh)

– Quarterly: 74% of plan (73.9 GWh)

– Realized wind speed in 2016 was 12% below the long-term average

– YTD 2017: 90% of plan (59.7 GWh) through February

• 2016 availability to resource: 97.0%

• Extension to the service and maintenance agreement with Vestas executed in December 2016

– Savings of nearly two million dollars (Canadian) per year

– Term extended through 2031

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Operations | Paul Rapp, VP Development

Alterra Power 2016 Results Call

Location: Iceland

Capacity: 174 MW

Ownership: 66.6% Alterra

Reykjanes power plant

Svartsengi / Reykjanes – Highlights • Generation:

– Annual: 93% of plan (1,122.4 GWh)

– Quarterly: 84% of plan (267.2 GWh)

– YTD 2017: 98.5% of plan (176.7 GWh) through February

• 2016 availability to resource: 96%

• Positive arbitration results

• Reykjanes field enhancement work is ongoing, generation stabilized in late 2016

• Icelandic deep drilling program (IDDP) drilling is complete

– Final depth of 4,650 m, initial readings of 4270C, 340 bars pressure

– Based on initial readings, well could produce as much as 30-50 MW of output, subject to testing and further research (ongoing through 2017 and into 2018)

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Construction | Murray Kroeker, VP Engineering & Safety

Alterra Power 2016 Results Call

Location: Indiana

Capacity: 7.2 MWDC

Ownership: 90% Alterra

Kokomo construction complete (December 2016)

Kokomo– Highlights

• Project commenced commercial operations on 29 December 2016

• Generation:

– YTD 2017: 75% of plan (0.9 GWh) through February

• Low ambient temperatures have resulted in higher than expected frost and snow on the panels during the first months of operation.

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Re-Introduction of Management Team

Alterra Power 2016 Results Call

Lynda Freeman, CFO

• 15+ years finance experience • Multiple closed transactions

Paul Rapp, VP Development

• 20+ years power experience • Delivered Shannon + Dokie projects

Jay Sutton, Operations

• 15+ years infrastructure experience • Delivered Toba and Jimmie projects

Murray Kroeker, VP Engineering & Safety

• 25+ years renewables experience • Delivered ABW project

Jon Schintler, VP Proj. Finance & Development

• 12+ years finance experience • Led Jimmie/Shannon/AMP financings

Shannon Webber, General Counsel

• 12+ years legal experience • Key role: Jimmie/Shannon/AMP

John Carson, CEO

• 15+ years finance and renewable business leadership

Ross Beaty, Executive Chairman & Founder

• 40 years experience as entrepreneur in minerals and renewables

• Founded Alterra (Magma) in 2008

Ásgeir Margeirsson, CEO, Iceland business

• 20+ years geothermal experience • Former COO of Reykjavik Energy

Recent additions:

• Scott Caldwell, VP US Development • David Kline, Sr Manager, Development

NEW STRUCTURE / TITLES

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Restatement of Mission | John Carson, CEO

Alterra Power 2016 Results Call

Mission – to be a leading global renewable power company through:

• Successful origination and development of new utility-scale projects • Opportunistic acquisitions of other renewable power projects and development assets • Excellence in production and safety as a premier operator/manager

Growth Strategy:

• Primary growth in USA market, where federal and state incentives encourage growth of renewables – Liquid power markets ensure future revenue streams post-PPA – Serving growing trend of corporations procuring renewable power – Important partner relationships (Starwood, Berkshire Hathaway Energy, Citi, Axium and others) – PTC qualification efforts for 1,200 to 1,700 MW of wind production capacity in 2016* – Current PTC construction window extends through end of 2020 – Deep experience: Alterra management team uniquely attuned to USA market

• Strong presence in growing Iceland market – hydro and geothermal growth

*This 1,200 – 1,700 MW of projects consist of projects fully owned by Alterra as well as projects owned by other wind developers with whom Alterra is working toward project acquisition or partnership.

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Our Assets | John Carson, CEO

Alterra Power 2016 Results Call

Asset Characteristics:

• Dependable long-term cash flow

– Long contract life (Alterra weighted average of 18 years (22 years in North America) – Stable jurisdictions – Creditworthy offtakes – Long asset life / land positions – Perpetual resource

• Typical 10-year financing horizon for USA assets

– Smaller distributions in early years; high “back-end” returns

• Alterra renewable fleet is resource-diversified (hydro, wind, geothermal and solar)

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Looking Ahead | John Carson, CEO

Alterra Power 2016 Results Call

Looking ahead

• Flat Top nearing primary construction

— Equipment and construction contracts complete

— Financiers selected / terms agreed

— Sale of 49% interest underway

• Development and acquisition efforts continue for multiple USA projects in diverse markets

— 1,200-1,700 MW* of potential capacity from PTC qualification efforts

— Further greenfield efforts in multiple jurisdictions

• Spartan solar project

— Amended PPA with Michigan State

— Commercial operations expected in 2017

• Icelandic projects

— Brúarvirkjun: potential construction in 2017

— Reykjanes 4: delayed per current field efforts

Flat Top project site

Turbine excavation at Flat Top site (December 2016)

*This 1,200 – 1,700 MW of projects consist of projects fully owned by Alterra as well as projects owned by other wind developers with whom Alterra is working toward project acquisition or partnership.

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Project Company debt (all non-recourse)

• Alterra’s project debt (net interest) at December 31, 2016 was $270.5 MM, and includes:

— Toba Montrose fixed rate debt (6.17% - 6.69%) with annual repayments until 2045 — Dokie 1 fixed rate debt (7.24%) with bi-annual repayments until 2030 — Jimmie Creek fixed rate debt (5.26%) with annual repayments beginning in 2017 until 2056 — HS Orka debt with weighted average interest rates of 0.7% – 5.5%, expiring between 2017 and 2031 — Kokomo debt variable rate at 3 month Libor + 3.5% with a balloon payment based on a 10-year maturity and 18-

year amortization (not included in the table below due to low dollar value, $4.5MM net interest)

APPENDIX 1: Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

Project Debt Service: 2017-2026 ($ MM)

Toba Montrose (40%) Dokie 1 (25.5%) HS Orka (66.6%) Jimmie Creek (51%) Total Net Interest

Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest

2017 1.8 8.4 0.8 2.0 9.4 0.7 1.2 3.6 13.2 14.7

2018 1.9 8.3 1.4 1.9 7.7 0.5 0.3 3.5 11.3 14.2

2019 2.0 8.2 1.5 1.8 7.7 0.6 0.4 3.5 11.6 14.1

2020 2.1 8.1 1.7 1.7 6.1 0.4 0.4 3.5 10.3 13.7

2021 2.3 8.0 1.6 1.6 5.1 0.1 0.5 3.5 9.5 13.3

2022 2.4 7.8 1.4 1.5 1.5 0.1 0.6 3.4 5.9 12.8

2023 2.6 7.7 1.9 1.4 0.8 0.0 0.2 3.4 5.5 12.5

2024 2.7 7.5 2.0 1.3 0.1 0.0 0.3 3.4 5.1 12.2

2025 2.9 7.3 2.0 1.1 0.1 0.0 0.2 3.4 5.2 11.8

2026 3.1 7.1 2.3 1.0 0.1 0.0 0.4 3.4 5.9 11.5

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Project Company debt (all non-recourse)

APPENDIX 1: Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Toba Montrose (40%)

0.0

1.0

2.0

3.0

4.0

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Dokie 1 (25.5%)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Jimmie Creek (51%)

0.0

2.0

4.0

6.0

8.0

10.0

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

HS Orka (66.6%)

Principal Interest

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Project Company debt (all non-recourse)

APPENDIX 1: Alterra Power 2016 Results Call

Financials | Lynda Freeman, CFO

Principal Interest

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Total Debt Service

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Forward-Looking Information

Cautionary Note Regarding Non-IFRS Measures Net Interest “Net Interest” means the effective portion of operating results or in the case of reference to operating, construction or development assets, the number that Alterra would have reported if each of HS Orka hf (66.6%, “HS Orka”), Toba Montrose General Partnership (40%, “Toba Montrose GP”), Jimmie Creek Limited Partnership (51%, “Jimmie Creek LP”), Dokie General Partnership (25.5%, “Dokie GP”), Shannon Wind Group Holdings, LLC (50%, “Shannon Wind Group Holdings”) and the Soda Lake facility (100% until the sale of Soda Lake on January 30, 2015) had been reported in accordance with Alterra’s actual share ownership for the year, as opposed to in the case of operating results, consolidating 100% of HS Orka (with an allocation to non-controlling interest), and Soda Lake (until the date of sale) and equity accounting for Toba Montrose GP, Jimmie Creek LP, Dokie GP and Shannon Wind Group Holdings. Explanation of Adjusted EBITDA Here and elsewhere, adjusted EBITDA ("Adjusted EBITDA") is defined by Alterra as earnings before interest, taxes, foreign exchange, depreciation and amortization, as well as before adjustments for changes in the fair value of holding company bonds (Sweden) and derivatives, write-offs of development costs, other income (expense) except business interruption insurance proceeds, amortization of below market contracts, value assigned to options granted, share of results of equity investments, Alterra’s proportionate interest in Adjusted EBITDA of its equity investments and non-recurring items (insurance deductibles, litigation and arbitration costs). Adjusted EBITDA has been calculated on a consistent basis with the prior year. Alterra discloses Adjusted EBITDA as it is a measure used by analysts and by management to evaluate Alterra's performance. As Adjusted EBITDA is a non-IFRS measure, it may not be comparable to Adjusted EBITDA calculated by others. In addition, Adjusted EBITDA is not a substitute for net earnings. Readers should consider net earnings in evaluating Alterra’s performance. For a reconciliation of consolidated Adjusted EBITDA to Alterra’s consolidated financial statements refer to Alterra’s Management’s Discussion and Analysis for the year ended December 31, 2016 available on SEDAR at www.sedar.com. Cautionary Note Regarding Forward-Looking Financial Information Certain information provided in this presentation constitutes forward-looking financial information within the meaning of applicable securities laws. Management has provided this information as of the date of this document in order to assist readers to better understand the expected results and impact of Alterra’s operating and construction projects expected to be commissioned in the near term. Readers are cautioned that this information may not be appropriate for any other purpose, including investment purposes, and consequently, should not place undue reliance on this information. Forward-looking financial information also constitutes forward-looking statements within the context of applicable securities laws and as such, is subject to the same risks, uncertainties and assumptions as are set out in the cautionary note above.