Decision of the ERO President approving the support level for Baltica offshore wind farm

With regard to the current reports no. 11/2021 of April 7, 2021 and no. 46/2022 of September 16, 2022, the Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that PGE has received decisions of the President of the Energy Regulatory Office (the “ERO President”) regarding individual price in contracts for difference (CfD) for both stages of Baltica Offshore wind farm - Baltica 2 and Baltica 3, with a total capacity of 2.5 GW, pursued jointly with Ørsted. The individual price in CfD for both stages of Baltica Offshore wind farm was determined at the maximum possible level of PLN 319.60 /MWh.

The price will be subject to annual indexation by average annual price index of consumer goods and services from the preceding calendar year.

The decisions of the ERO President finalise the process of determining the support level for Baltica Offshore wind farm, wherein directly before taking Final Investment Decision the amount of the granted support will be verified with regard to actually expected capital expenditures in order to reassure non-occurrence of excessive increase of return rate on investment.