PGE Polska Grupa Energetyczna S.A.

Capital/Financing Update • Jan 29, 2025

Report Content Adoption of the Final Investment Decision concerning the Baltica 2Project

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")informs that, on January 29, 2025, the shareholders of ElektrowniaWiatrowa Baltica - 2 sp. z o.o. ("Baltica 2") adopted a resolutionregarding the granting of the Final Investment Decision (FID) commencingthe construction phase of an offshore wind farm with a planned maximumcapacity of 1 498 MW (the "Baltica 2 Project"). The first power in theproject shall be generated in the first half of 2027 and thecommissioning of the whole project is planned for the second half of2027.

The Baltica 2 Project is being executed by PGE capital group companiesjointly with _#216;rsted capital group (global leader in offshore wind farmssector) by way of a joint venture, where each of the partners holds anequal share. The total budget for the project including capitalexpenditures in the development and construction phases as well asoperating costs in the construction phase is estimated at approximatelyPLN 30 billion, where the shareholders are responsible for raisingfinancing in equal proportions.

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