Publication of preliminary results of main capacity market auction for the year 2024

With reference to the current report no. 36/2019, the Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) notifies that on December 10, 2019 PSE S.A. published preliminary results of the main capacity auction for year 2024, including the clearing price of 259.87 PLN/kW/year. The price of capacity obligation in multi-year contracts will be adjusted every year with the annual average consumer price index.

At the same time, the Management Board of PGE discloses that total capacity obligation of 5 070 MW has been ultimately contracted for generation units owned by PGE Group, including:

- 1 335 MW for new units (with 17-years capacity contract)

- 3 695 MW for modernized units (3 330 MW with 5-years capacity contract and 365 MW with 7-years capacity contract)

- 40 MW for unconfirmed DSR unit (with 1-year capacity contract)

The above clearing price is not a final result of power market auction. Final results are to be published by the President of Energy Regulatory Office on its website (in the section Biuletyn Informacji Publicznej) on the first business day following 21st day after the close of capacity auction. Until then all capacity obligation contracts are conditional. PGE will update this current report only if the final results of capacity market turn out substantially different from preliminary results.

Total capacity obligation contracted for generation units owned by PGE Group for the year 2024, including long-term obligations contracted in the auction for the year 2021, amounts to 9 713 MW.