Adoption of the Final Investment Decision concerning the Baltica 2 Project

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) informs that, on January 29, 2025, the shareholders of Elektrownia Wiatrowa Baltica – 2 sp. z o.o. (“Baltica 2”) adopted a resolution regarding the granting of the Final Investment Decision (FID) commencing the construction phase of an offshore wind farm with a planned maximum capacity of 1 498 MW (the “Baltica 2 Project”). The first power in the project shall be generated in the first half of 2027 and the commissioning of the whole project is planned for the second half of 2027.

The Baltica 2 Project is being executed by PGE capital group companies jointly with Ørsted capital group (global leader in offshore wind farms sector) by way of a joint venture, where each of the partners holds an equal share. The total budget for the project including capital expenditures in the development and construction phases as well as operating costs in the construction phase is estimated at approximately PLN 30 billion, where the shareholders are responsible for raising financing in equal proportions.

The portion allotted to PGE Group will be financed from funds from the National Recovery and Resilience Plan under the loan granted by Bank Gospodarstwa Krajowego S.A. and funds provided in the form of project finance granted by consortium of 25 Polish and foreign financial institutions, including Bank Gospodarstwa Krajowego S.A., European Investment Bank and European Bank for Reconstruction and Development. Project finance is provided in non-recourse model and the repayment will be based on future cash flows generated by the Baltica 2 Project.