Photon Energy N.V.

Investor Presentation • Feb 14, 2024

Photon Energy N.V.

Monthly Report for January 2024

For the period from 1 to 31 January 2024

1. Short Summary of Business Highlights in the Reporting Period

1.1 Generation Results of Photon Energy Proprietary Power Plants

January 2024 was a very good month as far as generation results are concerned. The total electricity production of our proprietary portfolio amounted to 7.6 GWh, compared to 5.4 GWh a year earlier, up by 41.9% YoY. This growth was driven primarily by the capacity expansion of 35.4 MWp in Romania, commissioned within the past 12 months. Our Czech and Slovak power plants performed particularly well, resulting in an outstanding performance of 28.3% and 60.6% above energy forecasts, respectively, while our Hungarian and Romanian power plants exceeded the expectations by 8.3% and 4.5%, respectively. The generation of Australian power plants came in 8.3% below expectations, however.

The average specific yield reached a level of 59.8 kWh/kWp compared to 58.2 kWh/kWp a year earlier, which can be attributed to favourable weather conditions and a high availability factor.

Total January electricity generation represented an avoidance of 3,067 tonnes of CO2e emissions.

For further details, please refer to section 2. Generation Results.

1.2 Average Electricity Prices Realised by Our Proprietary Power Plants

In January, about 76% of our proprietary capacity – a total of 96.1 MWp of 127.3 MWp of our generation assets – sold electricity on energy markets.

The average realised electricity prices in January amounted to EUR 129 per MWh compared to EUR 143 per MWh a year ago, - 9.4% YoY.

The highest average prices were realised by our Czech power plants, with an average of EUR 652 per MWh and the Slovak power plants, in the amount of EUR 263 per MWh. In both markets the power plants benefit from the feed-in-tariff system. Those two markets were followed by Romania and Hungary, with average realised market prices of EUR 92 and 88 per MWh, respectively. The lowest realized prices were in Australia, with an average of EUR 64 per MWh.

For further details, please refer to section 3: Average Revenues Realised by Our Power Plants.

1.3 Return to Feed-in-tariffs in the Czech Republic and Hungary

As the Management announced following the publication of our Q3 2023 report, our Czech portfolio has been switched from the the green bonus system back to the feed-in-tariff (FIT) for the year 2024. The same decision has been taken regarding our Hungarian portfolio, and this change is currently in the process of being executed. The Management's decision to return to feed-in tariffs in these markets in 2024, amidst declining electricity prices in 2023, indicates a strategic approach to mitigate the risk of low energy prices and its impact on the Group's profitability. FITs can provide a guaranteed revenue stream, providing protection from current energy market price fluctuations. By returning to the FIT system, Management aims to stabilise and improve the profitability of the Group's operations.

As a result of this decision, since 1 January 2024 all power plants in the Czech Republic have returned to the FIT system out of which 795 kWp are entitled to a FIT in the amount of 684 EUR/MWh while the remaining 14.201 MWp will receive a FIT of 637 EUR/MWh throughout 2024.

With regards to our Hungarian portfolio, 46.2 MWp \\\\is currently selling electricity on the energy market, while 5.6 MWp remained in the support scheme benefiting from a FIT of 122 EUR/MWh as of 1 January 2024.

The decision to return to the FIT system is possible thanks to Government Decree No 787/2021 (XII.27.), published on 27 December 2021, which came into effect on 1 January 2022, and which allows PV power plants to temporarily exit the support schemes and then return to the respective support schemes at any time after a 12 month period. In the case of Photon Energy Group's assets the 12 month period has passed on 1 April 2023. Given the uncertainties on the energy market, the formal application process to return to the support system has been initiated and will make the power plants eligible for the FiT by 1 April or 1 May. The exact level of support still needs to be confirmed by the market regulator, but is will be materially above current electricity prices' levels and forward electricity prices.

The Management Board has carried out a thorough analysis of the risks and benefits associated with returning to the FIT system in both markets and has concluded that such a rebalancing of the revenue model of the IPP portfolio is the highest risk-adjusted value solution for the Group.

1.4 Developments in the Project Pipeline

Further progress has been made on the construction of our second set of power plants in Romania, with a total capacity of 20.1 MWp. Two out of five power plants from this batch with a total generation capacity of 7.7 MWp, located in Făget and Bocsa, have been connected to the grid,. As a result, the reported pipeline in Romania was reduced, but the total capacity in our IPP portfolio increased to 131.1 MWp. The other three Romanian power plants under construction remain on track.

In Poland, we have made further progress on the divestment process of PV projects– for details see point 1.5, Project Sale and Development Partnership with INWE Group. The completion of these negotiations is expected over the coming weeks. In Romania, we continue the divestment process for our largest utility-scale solar project, which has a total capacity of 54 MWp. This process is expected to be completed by mid-year 2024.

The divestment process of projects under development is in line with our long-term strategy, which assumes the cooperation with third-party investors either on a joint-venture basis or with the goal of selling the projects to such investors entirely. This approach is in line with the integrated business model of Photon Energy Group, which assumes value creation at various stages of the lifespan of photovoltaic assets, and our current divestment efforts are intended to confirm the profitability of this approach.

1.5 Connection of 3.8 MWp in Romania Brings Our Total IPP Portfolio to 131.1 MWp.

As of 1 February 2024, we have completed and grid-connected our tenth photovoltaic power plant in Romania. Located near Bocșa in Caraș-Severin County, the power plant has a generation capacity of 3.8 MWp and expands our IPP portfolio to 39.1 MWp in Romania and the total global generation capacity to 131.1 MWp.

The Bocșa power plant extends over 5.6 hectares of greenfield land and is equipped with a total of 6,160 photovoltaic modules. The total annual production of the new power plant is expected to be around 5.9 GWh. High-efficiency bifacial photovoltaic modules mounted on single-axis trackers will deliver clean energy to the grid managed by E-Distribuție Banat. The electricity generated will be sold on the energy market on a merchant basis, without any governmental support or a power purchase agreement with an energy off-taker. We expect the Bocsa power plant to generate around EUR 490,000 in revenues in 2024, based on the current forward prices for electricity base load in Romania.

1.6 Project Sale and Development Partnership with INWE Group

On 25 January 2024, we announced the signing of a sale and development agreement with PM PV 7 Sp. z o.o., a subsidiary of INWE Group, a Polish investment firm specialising in renewable energy and real estate projects aligned with the national energy transition.

The sale of the Złoczew Project, which was mentioned in our December 2023 monthly report, covers the sale of Photon Energy Group's rights to the 2.3 MW AC PV Project in Złoczew and the provision of project development services to bring the project to the RTB stage by Q2 2024. Photon Energy Group and INWE Group are also in advanced stages of negotiations regarding a comprehensive agreement for the sale and final development of Photon Energy Group's pipeline of small- and mid-sized PV projects, which have a total capacity of up to 11.5 MW AC. We plan to bring these projects to the RTB stage by year-end 2024. We previously announced our intention to sell our pipeline of Polish PV projects with secured grid connection capacity. More details on this cooperation can be found in section 4. Project Pipeline.

1.7 Surging Demand Across the CEE Region for Behind-the-Meter PV Installations

We are experiencing growing demand across the CEE region for behind-the-meter (BTM) installations, including energy storage solutions. A build-up in demand for utility-scale EPC services in the Czech Republic and Romania is driven by the significant drop in investment costs for PV technology and the strive to transition towards a sustainable green economy.

We have succeeded in winning several EPC tenders and in signing a 20-year power purchase agreement from a ground-mounted BTM installation with FORVIA, a leading global automotive component supplier, at their factory in Hungary. For details please see our press release here.

Across all types of EPC and BTM PPA projects, our pipeline of clients is growing dynamically, with several dozen BTM projects under discussion and a pipeline of utility-scale EPC opportunities in the hundreds of MWp across the Czech Republic and Romania at various stages.

It is important to note that our EPC activities will also drive the growth of our other business lines, as we will bundle O&M, energy offtake and the provision of ancillary services (grid support) with our EPC offering.

1.8 EBRD Has Approved a15 M EUR Secured Loan

On 24 January 2024 the Management Board of the European Bank for Reconstruction and Development (EBRD) approved a senior loan of up to EUR 15 million to the Photon Energy Group. For more information please refer to the EBRD's website here.

1.9 Further Growth in O&M Portfolio to a Total Capacity of Over 700 MWp

In January we recorded further growth in our O&M portfolio, primarily in the Romanian market, where approximately 23.1 MWp were added, bringing the portfolio to a total of 653 MWp, compared to 629 MWp as of December 2023. Our 'Inverter Cardio' inverter maintenance contracts remained unchanged at 50.6 MWp. With this and other small projects added in Hungary and Poland, our total O&M contracts exceeded the threshold of 700 MWp as of January 2024, continuing a positive, expansive trend since the beginning of 2023.

For further details please see section 5.: Operations & Maintenance Record Further Growth.

2. Generation Results of the Proprietary PV Power Plants

The table below represents generation results of the power plants owned directly or indirectly by Photon Energy N.V.

Table 1. Production Results in January 2024

Project name	Capacity	Revenue Jan	Prod. Jan	Proj. Jan	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	648 EUR	69,583	51,768	34.4%	69,583	51,768	34.4%	31.2%
Zvíkov I	2,031	648 EUR	51,477	63,665	-19.1%	51,477	63,665	-19.1%	7.6%
Dolní Dvořiště	1,645	648 EUR	44,954	41,107	9.4%	44,954	41,107	9.4%	45.9%
Svatoslav	1,231	648 EUR	34,475	29,959	15.1%	34,475	29,959	15.1%	28.0%
Slavkov	1,159	649 EUR	48,166	34,293	40.5%	48,166	34,293	40.5%	74.6%
Mostkovice SPV 1	210	648 EUR	8,370	5,910	41.6%	8,370	5,910	41.6%	52.8%
Mostkovice SPV 3	926	697 EUR	33,099	22,094	49.8%	33,099	22,094	49.8%	62.0%
Zdice I	1,499	649 EUR	65,875	45,482	44.8%	65,875	45,482	44.8%	58.3%
Zdice II	1,499	649 EUR	65,326	46,499	40.5%	65,326	46,499	40.5%	58.8%
Radvanice	2,305	649 EUR	88,876	57,705	54.0%	88,876	57,705	54.0%	66.4%
Břeclav rooftop	137	649 EUR	6,857	4,628	48.2%	6,857	4,628	48.2%	107.0%
Total Czech PP	14,996	652 EUR	517,058	403,110	28.3%	517,058	403,110	28.3%	47.1%
Babiná II	999	271 EUR	31,713	22,443	41.3%	31,713	22,443	41.3%	41.3%
Babina III	999	271 EUR	31,753	23,225	36.7%	31,753	23,225	36.7%	39.3%
Prša I.	999	270 EUR	39,448	28,158	40.1%	39,448	28,158	40.1%	96.9%
Blatna	700	273 EUR	26,810	16,734	60.2%	26,810	16,734	60.2%	105.5%
Mokra Luka 1	963	258 EUR	60,716	41,860	45.0%	60,716	41,860	45.0%	87.6%
Mokra Luka 2	963	257 EUR	65,292	45,293	44.2%	65,292	45,293	44.2%	91.4%
Jovice 1	979	263 EUR	35,611	17,727	100.9%	35,611	17,727	100.9%	100.9%
Jovice 2	979	263 EUR	35,064	17,210	103.7%	35,064	17,210	103.7%	103.7%
Brestovec	850	257 EUR	39,574	23,081	71.5%	39,574	23,081	71.5%	71.5%
Polianka	999	261 EUR	32,703	17,871	83.0%	32,703	17,871	83.0%	73.0%
Myjava	999	259 EUR	41,499	20,532	102.1%	41,499	20,532	102.1%	67.4%
Total Slovak PP	10,429	263 EUR	440,183	274,134	60.6%	440,183	274,134	60.6%	78.6%
Tiszakécske 1	689	86 EUR	28,282	28,160	0.4%	28,282	28,160	0.4%	8.4%
Tiszakécske 2	689	86 EUR	29,174	28,538	2.2%	29,174	28,538	2.2%	9.1%
Tiszakécske 3	689	89 EUR	34,357	28,734	19.6%	34,357	28,734	19.6%	51.4%
Tiszakécske 4	689	86 EUR	29,690	28,761	3.2%	29,690	28,761	3.2%	9.3%
Tiszakécske 5	689	86 EUR	28,690	29,216	-1.8%	28,690	29,216	-1.8%	9.2%
Tiszakécske 6	689	86 EUR	28,740	27,984	2.7%	28,740	27,984	2.7%	8.7%
Tiszakécske 7	689	86 EUR	29,049	27,646	5.1%	29,049	27,646	5.1%	9.0%
Tiszakécske 8	689	86 EUR	27,979	23,717	18.0%	27,979	23,717	18.0%	8.9%
Almásfüzitő 1	695	85 EUR	26,148	24,839	5.3%	26,148	24,839	5.3%	33.0%
Almásfüzitő 2	695	85 EUR	24,640	24,127	2.1%	24,640	24,127	2.1%	30.1%
Almásfüzitő 3	695	86 EUR	27,300	24,084	13.4%	27,300	24,084	13.4%	31.6%
Almásfüzitő 4	695	85 EUR	26,000	24,869	4.5%	26,000	24,869	4.5%	32.9%
Almásfüzitő 5	695	85 EUR	30,336	25,210	20.3%	30,336	25,210	20.3%	37.5%
Almásfüzitő 6	660	85 EUR	28,531	25,068	13.8%	28,531	25,068	13.8%	35.2%
Almásfüzitő 7	691	85 EUR	27,784	24,952	11.3%	27,784	24,952	11.3%	35.3%
Almásfüzitő 8	668	85 EUR	26,244	24,548	6.9%	26,244	24,548	6.9%	32.9%
Nagyecsed 1	689	88 EUR	39,949	25,046	59.5%	39,949	25,046	59.5%	88.4%
Nagyecsed 2	689	88 EUR	38,830	25,178	54.2%	38,830	25,178	54.2%	78.2%
Nagyecsed 3	689	88 EUR	39,382	25,010	57.5%	39,382	25,010	57.5%	80.0%
Fertod I	528	82 EUR	27,383	20,360	34.5%	27,383	20,360	34.5%	62.3%
Fertod II No 2	699	83 EUR	40,973	26,481	54.7%	40,973	26,481	54.7%	66.0%
Fertod II No 3	699	83 EUR	41,132	26,596	54.7%	41,132	26,596	54.7%	66.7%
Fertod II No 4	699	83 EUR	40,840	30,433	34.2%	40,840	30,433	34.2%	66.6%
Fertod II No 5	691	83 EUR	40,362	30,265	33.4%	40,362	30,265	33.4%	66.2%
Fertod II No 6	699	83 EUR	40,600	26,323	54.2%	40,600	26,323	54.2%	66.3%
Kunszentmárton I/ 1	697	85 EUR	43,254	32,815	31.8%	43,254	32,815	31.8%	41.8%

Project name	Capacity	Revenue Jan	Prod. Jan	Proj. Jan	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh,	kWh	kWh	%	kWh	kWh	%	%
Kunszentmárton I No 2	697	85 EUR	41,516	31,442	32.0%	41,516	31,442	32.0%	41.9%
Kunszentmárton II No 1	693	85 EUR	43,516	34,487	26.2%	43,516	34,487	26.2%	43.4%
Kunszentmárton II No 2	693	85 EUR	43,167	34,257	26.0%	43,167	34,257	26.0%	39.8%
Taszár 1	701	82 EUR	44,809	49,440	-9.4%	44,809	49,440	-9.4%	45.9%
Taszár 2	701	82 EUR	44,608	49,440	-9.8%	44,608	49,440	-9.8%	62.5%
Taszár 3	701	82 EUR	44,323	49,440	-10.3%	44,323	49,440	-10.3%	44.8%
Monor 1	688	86 EUR	30,193	22,809	32.4%	30,193	22,809	32.4%	26.0%
Monor 2	696	86 EUR	28,666	30,703	-6.6%	28,666	30,703	-6.6%	26.8%
Monor 3	696	86 EUR	30,266	31,426	-3.7%	30,266	31,426	-3.7%	28.2%
Monor 4	696	86 EUR	29,637	31,788	-6.8%	29,637	31,788	-6.8%	26.6%
Monor 5	688	86 EUR	30,525	32,362	-5.7%	30,525	32,362	-5.7%	27.7%
Monor 6	696	86 EUR	30,474	32,159	-5.2%	30,474	32,159	-5.2%	27.7%
Monor 7	696	86 EUR	30,752	32,167	-4.4%	30,752	32,167	-4.4%	30.1%
Monor 8	696	86 EUR	30,406	31,961	-4.9%	30,406	31,961	-4.9%	27.2%
Tata 1	672	77 EUR	17,003	23,858	-28.7%	17,003	23,858	-28.7%	-10.6%
Tata 2	676	85 EUR	32,954	25,534	29.1%	32,954	25,534	29.1%	60.3%
Tata 3	667	83 EUR	35,008	25,564	36.9%	35,008	25,564	36.9%	67.0%
Tata 4	672	86 EUR	30,952	24,275	27.5%	30,952	24,275	27.5%	58.1%
Tata 5	672	86 EUR	30,405	24,077	26.3%	30,405	24,077	26.3%	56.7%
Tata 6	672	84 EUR	31,360	23,341	34.4%	31,360	23,341	34.4%	64.1%
Tata 7	672	84 EUR	31,376	23,545	33.3%	31,376	23,545	33.3%	64.0%
Tata 8	672	86 EUR	31,085	24,306	27.9%	31,085	24,306	27.9%	57.7%
Malyi 1	695	89 EUR	38,595	27,410	40.8%	38,595	27,410	40.8%	100.3%
Malyi 2	695	89 EUR	39,822	28,104	41.7%	39,822	28,104	41.7%	103.4%
Malyi 3	695	89 EUR	40,070	28,217	42.0%	40,070	28,217	42.0%	103.2%
Puspokladány 1	1,406	124 EUR	19,087	50,690	-62.3%	19,087	50,690	-62.3%	-47.0%
Puspokladány 2	1,420	89 EUR	49,591	57,220	-13.3%	49,591	57,220	-13.3%	5.2%
Puspokladány 3	1,420	88 EUR	47,745	55,400	-13.8%	47,745	55,400	-13.8%	2.0%
Puspokladány 4	1,406	88 EUR	47,234	52,620	-10.2%	47,234	52,620	-10.2%	21.0%
Puspokladány 5	1,420	89 EUR	51,362	57,740	-11.0%	51,362	57,740	-11.0%	5.6%
Puspokladány 6	1,394	123 EUR	44,970	54,300	-17.2%	44,970	54,300	-17.2%	-0.1%
Puspokladány 7	1,406	123 EUR	45,895	56,360	-18.6%	45,895	56,360	-18.6%	-1.7%
Puspokladány 8	1,420	88 EUR	48,728	55,080	-11.5%	48,728	55,080	-11.5%	4.3%
Puspokladány 9	1,406	123 EUR	33,793	56,560	-40.3%	33,793	56,560	-40.3%	-28.1%
Puspokladány 10	1,420	88 EUR	47,096	55,150	-14.6%	47,096	55,150	-14.6%	0.6%
Tolna	1,358	84 EUR	77,024	58,814	31.0%	77,024	58,814	31.0%	49.6%
Facankert (Tolna 2)	1,358	85 EUR	79,330	51,161	55.1%	79,330	51,161	55.1%	55.1%
Total Hungarian PP	51,814	88 EUR	2,298,987	2,122,167	8.3%	2,298,987	2,122,167	8.3%	32.0%
Siria	5,691	92 EUR	247,104	244,156	1.2%	247,104	244,156	1.2%	N/A
Calafat 1	2,890	92 EUR	170,565	149,238	14.3%	170,565	149,238	14.3%	N/A
Calafat 2	1,935	92 EUR	108,136	95,789	12.9%	108,136	95,789	12.9%	N/A
Calafat 3	1,203	92 EUR	69,539	59,892	16.1%	69,539	59,892	16.1%	N/A
Aiud	4,730	92 EUR	244,500	206,283	18.5%	244,500	206,283	18.5%	N/A
Teius	4,730	92 EUR	263,520	210,186	25.4%	263,520	210,186	25.4%	N/A
Făget 1	3,178	92 EUR	123,776	143,093	-13.5%	123,776	143,093	-13.5%	92 EUR
Făget 2	3,931	91 EUR	79,824	176,040	-54.7%	79,824	176,040	-54.7%	91 EUR
Săhăteni	7,112	92 EUR	422,032	369,875	14.1%	422,032	369,875	14.1%	N/A
Total Romanian PP2	35,400	92 EUR	1,728,996	1,654,552	4.5%	1,728,996	1,654,552	4.5%	N/A
Symonston	144	211 EUR	17,200	19,960	-13.8%	17,200	19,960	-13.8%	-7.0%
Leeton	7,261	60 EUR	1,402,402	1,470,150	-4.6%	1,402,402	1,470,150	-4.6%	-13.4%
Fivebough	7,261	65 EUR	1,203,574	1,369,170	-12.1%	1,203,574	1,369,170	-12.1%	-13.0%
Total Australian PP	14,744	64 EUR	2,623,176	2,859,280	-8.3%	2,623,176	2,859,280	-8.3%	-13.2%
Total	127,305	129 EUR	7,608,400	7,313,243	4.0%	7,608,400	7,313,243	4.0%	41.9%

Notes:

Capacity: installed capacity of the power plant

Prod.: production in the reporting month - Proj.: projection in the reporting month

Perf.: performance of the power plant in reporting month i.e. (production in Month / projection for Month) - 1.

YTD Prod.: accumulated production year-to-date i.e. Jan- the end of the report. month.

YTD Proj.: accumulated projection year-to-date i.e. Jan - the end of the reporting month. Perf. YTD: performance of the pp YTD i.e. (YTD prod. in 2024 / YTD proj. in 2024) – 1. YTD YOY: (YTD Prod. in 2024 / YTD Prod. in 2023) – 1.

Chart 1.a Production of the Czech Portfolio in January 2024 Chart 1.b Production of the Slovak Portfolio in January 2024

0 100 200 300 400 500 600 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Cumulative production in MWh

Chart 1.c Production of the Hungarian Portfolio in January 2024

Chart 1.d Production of the Australian Portfolio in January 2024

3. Average Revenues Realized by Our Power Plants

The table below represents an estimation of average prices realized on sales of electricity from our generation assets. Estimates of revenues are based on the management reports and may deviate from final financial statements due to exchange rates.

Table 2. Estimated Revenues from Electricity Generation in January 2024

Portfolio	Capacity	Prod. January	Avg. Revenue January	Total Revenue January	YTD Avg. Revenue	YTD Revenue
Unit	MWp	MWh	EUR/MWh	In Euro thousand	EUR/MWh, in 2024	In Euro thousand
Czech Republic1	15.0	517	652	337	652	337
Slovakia1	10.4	440	263	116	263	86
Hungary	51.8	2,299	88	202	88	202
Romania	35.4	1,729	92	160	92	160
Australia3	14.7	2,623	64	167	64	167
Total Portfolio	127.3	7,608	129	981	129	951

1 – Slovakian and Czech power plants benefit from a fixed feed-in-tariff support.

² Slovak joint-ventures SK SPV 1 s.r.o., Solarpark Polianka s.r.o., and Solarpark Myjava s.r.o. are not presented in the above table.

³ Realized market electricity price + Australian Large-scale Generation Certificate spot closing price in Australia.

All power plant in Romania and 46.2 MWp in Hungary sells electricty under merchant model. Remaining 4.6 MWp in Hungary remains in Feed-in-Tarrif.

4. Reporting on the Project Pipeline

Project development is a crucial activity in Photon Energy's business model of covering the entire value chain of PV power plants. The main objective of project development activities is to expand our PV proprietary portfolio, which provides recurring revenues and free cash flows to the Group. For financial or strategic reasons, we may decide to cooperate with third-party investors either on a jointventure basis or with the goal of exiting the projects to such investors entirely. Ownership of project rights provides us with a high level of control and allows locking in EPC (one-off) and O&M (long-term) services. As a result, project development is a key driver for our future growth. Our experience in project development and financing in various markets and jurisdictions is an important competitive advantage and mitigates the inherent risks related to project development.

Table 3. Projects under development as of the reporting date (DC capacity)*

Country	1. Feasibility*	2. Early development	3. Advanced development	4. Ready-to-build technical	5. Under construction	Total in MWp
Romania	14.9	90.3	80.1	17.7	12.4	215.4
Poland	252.5	16.8	20.3	-	-	289.6
Hungary	37.6		2.7	4.1	-	44.3
Australia	455.0	200.0	9.8	-	-	664.8
Total in MWp	760.0	307.1	106.7	27.9	12.4	1,214.2

*Development phases are described in the glossary available at the end of this chapter. Photon Energy refers to the installed DC capacity of projects expressed in Megawatt peak (MWp) in its reporting, which might fluctuate over the project development process.

**Projects in feasibility stage 1. are presented at AC capacity as DC is difficult to estimate at the early-stage of utility scale projects.

Chart 2. Project pipeline as of the reporting date, in MWp DC

During the reporting month the following changes took place in the project development pipeline:

► In Romania, two of five power plants from our second batch of installations were connected and started feeding electricity to the grid. Located in Făget and Bocsa, the installations have a combined generation capacity of 7.7 MWp. As a result, the pipeline in Romania was reduced, but our total IPP portfolio increased to 131.1 MWp. The remaining power plans under construction are on track.

We continue the divestment process for our largest utility-scale solar project in Romania, located in Gorj county, which has a total capacity of 54 MWp. The building permit was secured in Q4 2023 and we are currently working through the remaining milestones towards the ready-to-build stage. The divestment of this project is expected to be completed by mid-year 2024.

• ► In Hungary, there have been no changes in the total capacity under development, though multiple projects were submitted to the capacity application tender in January 2024 and will be resolved towards the end of Q1 2024.
• ► In Poland, we signed a sales and development agreement with a subsidiary of Pracownia Finansowa Grupa INWE, on the basis of which we transferred the rights to the project in Złoczew, which has an AC capacity of 2.3 MWp, and agreed to provide further development services to bring the project to the readyto-build stage. More details can be found on page 9, Project Highlights.

With regards to the divestment of some larger projects from the Polish portfolio, the potential buyers received a two-month window to conclude the due diligence process and agree on sale documentation. The completion of these negotiations is expected over the coming weeks.

Country	Location	Dev. phase	Equity share	MWp DC	Commercial Model	Land	Grid connection	Construction permit	Expected SoC1	Update on the project
Romania	Tamadu Mare-1	4	100%	4.1	Merchant/PPA	Secured	Secured	Secured	Q2 2024	Projects adheres to DSO schedule for grid reinforcement works
Romania	Tamadu Mare-2	4	100%	6.1	Merchant/PPA	Secured	Secured	Secured	Q2 2024	Projects adheres to DSO schedule for grid reinforcement works
Romania	Sannicolau Mare	4	100%	7.5	Merchant/PPA	Secured	Secured	Secured	Q2 2024	Project awaits DSO relocation of overhead cable prior to start of construction.
Hungary	Tolna 2	4	100%	1.36	Merchant/PPA	Secured	Secured	Secured	Q2 2024	Construction date delayed due to DSO commissioning timeline.
Hungary	Tolna 3	4	100%	1.36	Merchant/PPA	Secured	Secured	Secured	Q2 2024	Construction date delayed due to DSO commissioning timeline.
Hungary	Tolna 5	4	100%	1.36	Merchant/PPA	Secured	Secured	Secured	Q1 2024	Construction date delayed due to DSO commissioning timeline.
TOTAL				21.8

Table 4. Progress on Projects Ready-to-Build stage 4, as of the reporting date.

¹SoC stands for expected start of construction date.

Table 5. Progress on projects under construction, as of the reporting date.

Country	Location	Dev. phase	Equity share	MWp DC	Commercial Model	Construction progress
Romania	Sarulesti	5	100%	3.2	Merchant/PPA	98%
Romania	Magureni	5	100%	1.7	Merchant/PPA	98%
Romania	Faget 3	5	100%	7.5	Merchant/PPA	95%
TOTAL				12.4
	Procurement		Site preparations		Substructures	Technology installed	Connection works		Comissioning

Projects Highlights

This month we would like to provide you with more info on the below project:

► Project Sale and Development Partnership with INWE Group.

Photon Energy Group announced on 25 January 2024, the signing of a sale and development agreement with PM PV 7 Sp. z o.o. (the 'Buyer'), a subsidiary of INWE Group, a Polish investment firm specialized in renewable energy and real estate projects aligned with the national energy transition.

Photon Energy Group is also providing O&M services to PM PV 7's portfolio of operating PV power plants in Poland. The transaction covers the sale of Photon Energy Group's rights to the 2.3 MW AC PV Project in Złoczew and the provision of project development services to bring the project to the RTB stage by Q2 2024.

Photon Energy Group and INWE Group are also in advanced stages of negotiations regarding a comprehensive agreement for the sale and final development of Photon Energy Group's pipeline of small- and mid-sized PV projects, which have a total capacity of up to 11.5 MW AC. The Group plans to bring these projects to the RTB stage by year-end 2024. Photon Energy Group previously announced its intention to sell its pipeline of Polish PV projects with secured grid connection capacity.

'The sale of the Złoczew Project and our advanced discussions with INWE Group in relation to over 11.5 MW AC of our Polish project pipeline demonstrates the advantages of our integrated business model. What started with INWE Group entrusting their already operating PV power plants to Photon Energy Operations Polska for O&M services, is growing into a more comprehensive partnership,' said Georg Hotar, CEO of Photon Energy Group. 'We are pleased that in INWE Group we have found a partner who appreciates our approach – uncommon in the Polish market – of developing PV projects on single-axis trackers. We are fully committed to working closely with INWE Group to add to their portfolio the highest performing PV power plants, both in terms of electricity generation and financial returns, in the Polish market.'

'The acquisition of the Złoczew project is fully in line with our strategy to further expand INWE's investments into the Polish renewable energy sector,' said Paweł Mazur, Management Board Member of INWE Group. 'We started working with Photon Energy Group in early 2023 when they commenced providing professional O&M services to our PV power plants, and today we know that our organisations share the same long-term vision for the high quality development and operation of PV assets. By acquiring the Złoczew project, we are entering a strategic cooperation regarding Photon Energy Group's pipeline of late stage projects, which we expect to provide our investors with attractive returns based on the more valuable electricity generation profile achieved by single-axis trackers.'

The project has an AC capacity of 2.3 MW and is located in Złoczew, Łódź Voivodeship. It has been designed and has all permits in place to be built on single-axis trackers, and is set to connect to PGE Dystrybucja's overhead Medium Voltage Network. Photon Energy Group's development services aim to deliver the final project permits in line with INWE's preferred technical parameterts.

Glossary of terms	Definitions
Development phase 1: "Feasibility"	LOI or MOU signed, location scouted and analyzed, working on land lease/purchase, environmental assessment and ap plication for grid connection.
Development phase 2: "Early development"	Signing of land option, lease or purchase agreement, Environmental assessment (environmental impact studies "EIS" for Australia), preliminary design. Specific to Europe: Application for Grid capacity, start work on permitting aspects (construction, connection line, etc.). Specific to Australia: community consultation, technical studies.
Development phase 3: "Advanced development"	In Europe: Finishing work on construction permitting, Receiving of MGT (HU)/ATR (ROM) Letter, Finishing work on permit ting for connection line, etc. In Australia: Site footprint and layout finalised, Environmental Impact Statement and development application lodged. Grid connection studies and design submitted.
Development phase 4: "Ready-to-build technical"	In Europe: Project is technical ready to build, we work on offtake model (if not FIT or auction), securing financing (inter nal/external). In Australia: Development application approved, offer to connect to grid received and detailed design com menced. Financing and off-take models/arrangements (internal/external) under negotiation.
Development phase 5: "Under construction"	Procurement of components, site construction until the connection to the grid. On top for Australian projects, signature of Financing and off-take agreements, reception of Construction certificate, con clusion of connection agreement, EPC agreement, Grid connection works agreements.
DC and AC capacity	Electricity grids run on alternating current (AC). Solar modules produce direct current (DC), which is transformed into AC by inverters. Heat, cable lines, inverters and transformers lead to energy losses in the system between the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore, for a given grid connection capacity a larger module capacity (expressed in Watt peak – Wp) can be installed without exceeding the grid connection limit. At times of extremely high production, inverters can reduce the volume of electricity so that the plant stays within the grid connection limits.

5. Operations & Maintenance Reports Further Growth

In January 2024, Photon Energy Group has recorded further growth in its O&M portfolio, primarily in Romanian market, where approximately 23.1 MWp was added to the portfolio of O&M solutions, bringing the portfolio to a total of 653.0 MWp, compared to 629.0 MWp as of December 2023. Our 'Inverter Cardio' inverter maintenance contracts remained unchanged at 50.6 MWp.

Chart 3a Full O&M Solutions and Inverter Cardio, in MWp Chart 3b Full O&M Solutions, Geographical Split

With this and other small projects added in Hungary and Poland, the total O&M contracts exceeded the threshold of 700 MWp as of January 2024 and continuing a positive, expansive trend since 2023.

Geographically, the two leading markets for O&M services are currently Poland and Hungary, with approximately 271 MWp and 184 MWp, respectively.

6. Investor Calendar

The following investor reports will be published in 2024:

• 19 February 2024: Quarterly report for Q4 2023
• 14 March 2024: Monthly report for February 2024
• 15 April 2024: Monthly report for March 2024
• 24 April 2024: Annual report for 2023
• 16 May 2024: Monthly report for April 2024
• 16 May 2024: Quarterly report for Q1 2024
• 14 June 2024: Monthly report for May 2024
• 16 July 2024: Monthly report for June 2024
• 14 August 2024: Monthly report for July 2024
• 19 August 2024: Quarterly report for Q2 2024 / H1 2024
• 13 September 2024: Monthly report for August 2024
• 15 October 2024: Monthly report for September 2024
• 15 November 2024: Monthly report for October 2024
• 18 November 2024: Quarterly report for Q3 2024
• 13 December 2024: Monthly report for November 2024

7. Investor Relations Contact

E-mail: ir@photonenergy.com

Photon Energy N.V. Barbara Strozzilaan 201 1083 HN Amsterdam The Netherlands Web: www.photonenergy.com

Amsterdam, 14 February 2024

Georg Hotar, Member of the Board of Directors Michael Gartner, Member of the Board of Directors