Finavera Renewables Sells Majority Interest in Grid Connection for Ireland's Largest Onshore Wind Project to Scottish and Southern Energy for (euro)8.4 Million

VANCOUVER and CLOOSH VALLEY, Ireland, August 25, 2010 - Finavera Renewables Inc. ("Finavera Renewables" or the "Company") (TSX-V:
FVR) is pleased to announce that it has signed a series of agreements for the
co-development of the 105 megawatt ("MW") Cloosh Valley Wind Project in
County Galway, Ireland. Finavera Renewables has signed an agreement with SSE
Renewables (Ireland) Limited, the Republic of Ireland renewables development
division of Scottish and Southern Energy ("SSE"), the UK energy company which
previously acquired Irish wind energy company Airtricity, to sell a majority
interest in its wholly owned Gate 3 grid connection from Eirgrid to SSE for
(euro)8.4 million. The (euro)8.4 million consideration is payable in staged
payments.

Finavera Renewables has also signed a Co-Development Agreement ("CDA")
with SSE and Coillte, the state owned commercial forestry and renewables
company, to jointly develop the Cloosh Valley project. Coillte is the
landowner at the project site and has been a development partner on the
project with Finavera since 2009. Finavera will retain a 10% equity interest
in the project and will participate in all project development functions and
activities.

Finavera Renewables CEO Jason Bak said, "We are delighted to be
partnering with Scottish and Southern Energy and Coillte on the development
of the Cloosh Valley Wind project. SSE brings significant development,
construction, and operating experience to this project. The strength of the
development team now behind the Cloosh Valley project illustrates the value
of this project, which has some of the best available wind resources in
Europe. We now have the right team and a clear path to construction and full
operation of the Cloosh Valley project."

About the Cloosh Valley Wind Project

The Cloosh Valley Wind Project has nameplate capacity of up to 105MW and
has received a Gate 3 Node Assignment from Eirgrid. The wind resource at the
Cloosh Valley project is among the strongest in Europe. The project capacity
of 105MW would exceed all current onshore wind farms in Ireland and would
provide enough electricity for approximately 68,000 homes.

About Scottish and Southern Energy (SSE)

SSE is one of the UK and Ireland's leading energy companies. Its core
purpose is to provide the energy people need in a reliable and sustainable
way. It is involved in the generation, transmission, distribution and supply
of electricity; energy trading; the development of major renewable energy
projects; the extraction, storage, distribution and supply of gas; electrical
and utility contracting; and telecoms. SSE owns just over 11,300MW of
electricity generation capacity, including its share of joint ventures and
associates. This makes it the second largest electricity generator across the
UK and Ireland. The capacity comprises 4,590MW of gas- and oil-fired
capacity, 4,370MW of coal-fired capacity (with biomass 'co-firing'
capability), and 2,370MW of renewable capacity.

About Coillte

Coillte is a commercial company operating in forestry, timber panel
products, land based businesses and renewable energy. Coillte employs 1,000
people and owns over 445,000 hectares of land, about 7% of the land cover in
Ireland.

Jason Bak, CEO

About Finavera Renewables Inc. (www.finavera.com)

Finavera Renewables Inc. is dedicated to the development of renewable
energy resources. The Company's objective is to become a major renewable and
green energy producer by developing and operating its assets in the wind
sector. Finavera Renewables is developing wind energy projects in Canada and
Ireland. In British Columbia, Canada, projects totalling 301MW have been
awarded Electricity Purchase Agreements under the BC Hydro Clean Power Call.
In Ireland, one pre-construction wind project is under development with a
potential capacity of 105MW. Data collection and environmental studies have
been continuing at a number of sites in both countries.

Statements in this news release, other than purely historical
information, including statements relating to the Company's future plans and
objectives or expected results, constitute Forward-looking statements. The
words "would", "will", "expected" and "estimated" or other similar words and
phrases are intended to identify forward-looking information. Forward-looking
information is subject to known and unknown risks, uncertainties and other
factors that may cause the Company's actual results, level of activity,
performance or achievements to be materially different than those expressed
or implied by such forward-looking information. Such factors include, but are
not limited to: uncertainties related to the ability to raise sufficient
capital, changes in economic conditions or financial markets, litigation,
legislative or other judicial, regulatory and political competitive
developments and technological or operational difficulties. Consequently,
actual results may vary materially from those described in the
forward-looking statements.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release."

For further information: Finavera Renewables, Myke Clark, SVP Business
Development, Finavera Renewables, +1-604-288-9051, mclark(at)finavera.com;
Media Contact, Mike Wilson, FD Element, +1-604-760-4758,
mike.wilson(at)fd.com

For further information: Finavera Renewables, Myke Clark, SVP Business
Development, Finavera Renewables, +1-604-288-9051, mclark(at)finavera.com;
Media Contact, Mike Wilson, FD Element, +1-604-760-4758,
mike.wilson(at)fd.com