Result of main capacity market auction for the year 2021

The Management of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that on November 15, 2018, as a result of capacity market auction for the year 2021 (the main auction), total capacity obligation of not less than 11 652 MW has been contracted for generation units owned by PGE Group. Auction clearing price has been set within the range of 218.56-240.40 PLN/kW/year and - on the basis of article 38 par. 1 of the Capacity Market Act of December 8, 2017 - the price will be disclosed by PSE S.A within 3 business days.

Total capacity obligation involves:

- 1 944 MW for new units (15-years capacity contract)

- not less than 2 698 MW for units being modernized (including 2 419 MW with 5-years capacity contract and 280 MW with 7-years capacity contract)

- 7 009 MW for existing units (1-year capacity contract)

The above capacity obligations are not final results of capacity 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.