Photon Energy N.V.

Monthly Report for July 2023

For the period from 1 to 31 July 2023

1. Short Summary of the Events in the Reporting Period

1.1 Generation Results of Photon Energy's Power Plants in July 2023.

July was a very good month in terms of electricity production with a total volume of 17.9 GWh compared to 14.5 GWh a year earlier, up by 23.6% YOY. This increase was a result of new generation capacity added in the first half of this year, in Romania. Our existing assets in Hungary, the Czech Republic and Slovakia have performed in line with expectations and have met the energy production forecasts for this month.

Year-to-date results of our accumulated electricity generation amounted to 83.4 GWh compared to 80.5 GWh a year earlier, up by 3.5%.YOY. Year-to-date generation results have improved but remain 12.7% below expected values.

The specific performance ratio of our proprietary portfolio (SPR), which shows the production efficiency of PV technology, reached an outstanding level of 159 kWh/kWp compared to 158.0 kWh/kWp last year and 141 kWh/kWp in June 2023.

Last not least, the year-to-date clean electricity generation of 83.4 GWh represents an avoidance of 32,152 tonnes of CO2e emissions.

For details, please refer to chapter 2. Generation results, where you can find details of the performance of our power plants.

1.2 Average Electricity Prices Realized in July 2023

The Group is currently selling electricity in the merchant model from 86% of its proprietary assets. In July, the average realized electricity prices on the whole portfolio amounted to EUR 161 / MWp compared to EUR 172 / MWh in June 2023 and EUR 301 / MWh a year ago i.e. July 2022. This translates into a decline of 6.6% MOM and 46.7% YOY.

The highest average prices have been realized by our Czech power plants with the average of EUR 623 / MWh, mainly thanks to a hefty cushion provided by the green bonus system. The lowest prices have been achieved in Australia with the average of EUR 54 / MWh.

For details, please refer to chapter 3 Average Revenues Realized by Our Power Plants.

1.3 Reporting on Photon Energy's Project Pipeline

Photon Energy is currently developing PV projects with the total DC capacity of over 1.2 GWp, including 660+ MWp in Australia, 30+ MWp in Hungary, 300+ MWp in Poland and Romania 220+ MWp.

In July 2023, the pipeline of projects under development increased by over 300 MWp compared to June 2023. This has been attributable to the new projects at feasibility stage in the amount of 455 MWp AC which has been added to the pipeline this month. All of those projects are located in New South Wales, developed using RayGen technology and assume a total estimated energy storage of 3.5 MWh. On the other side, Yadnarie's project DC capacity has been reduced from 300 MWp DC to 200 MWp because of the geotechnical investigation and environmental studies, which resulted in a revision of the areas of land suitable for the construction of the power plant and a decision to down-size the project by 100 MWp/DC. In Hungary, due to changes in regulations and challenges in the development process connected to the reclassification of the zoning areas some projects in early development stage and under feasibility studies were recalibrated, resulting in downsizing the Hungarian pipeline down by 34 MWp.

In Romania, the Group is currently carrying out the construction works on more than 20.1 MWp of new capacities with the advancement of works within a range 28%-59% to completion. Additional 10.3 MWp is expected to be commissioned in Q3 2023, including project Faget 1 with the capacity of 3.2 MWp commissioned as of 10 August and Sahateni 1 with the capacity of 7.1 MWp, which is in the final stretch of the commissioning process. Boths projects will increase our proprietary portfolio to over 123 MWp.

For details, please refer to chapter 4. Reporting on Photon Energy's Project Pipeline.

1.4 Photon Energy Group Revises its Guidance for 2023 and 2024 Capacity Target

Following the semi-annual results for the first half of 2023, the management decided to revise its full year guidance and decrease estimations of consolidated revenues for 2023 to EUR 110.0 million from EUR 150 million announced on 15 February 2023. Current revenue expectations compared to 2022 consolidated revenues of EUR 95.1 million translate into a 15.6% increase YOY. At the same time management decided to decrease its EBITDA guidance from EUR 29.0 million announced on 15 February 2023 to EUR 10 million, which compared to EBITDA of EUR 24.3 million achieved in 2022 represents a decline of 58.9% YOY.

The management has also decided to revise its previously announced target of 600 MWp of PV power plants in the Group's proprietary portfolio by year-end 2024 down to 200 MWp.

1.5 Prices Volatility of 6.5% Euro Green Bond 2021/2027

In July 2023, the Group's 6.5% Green Euro Bond 2021/2027 (ISIN DE000A3KWKY4) has experienced significant price volatility, falling to as low as 60% of the par value before recovering and stabilizing at price levels above 80%, as of the reporting date. The reason for these fluctuations is unclear but it seems possible that the fall in bond prices is the result of an unfortunate combination of market factors, including announcements of painful bond restructurings by other German SME issuers and the announced liquidation of the largest German SME bond fund, which is an investor in the group's EUR Green Bond.

1.6 Other Corporate Events

For more details on recent business developments please see our report Management Report and Interim Financial Statements for H1 2023 which was published on 16 August 2023.

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 July 2023

Project name	Capacity	Revenue July	Prod. July	Proj. July	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	618 EUR	346,220	332,494	4.1%	1,596,105	1,683,064	-5.2%	-9.9%
Zvíkov I	2,031	618 EUR	294,896	290,778	1.4%	1,434,006	1,529,049	-6.2%	-6.9%
Dolní Dvořiště	1,645	618 EUR	222,219	229,478	-3.2%	1,039,036	1,109,043	-6.3%	-7.8%
Svatoslav	1,231	618 EUR	170,032	171,126	-0.6%	748,160	811,776	-7.8%	-11.7%
Slavkov	1,159	618 EUR	169,946	170,394	-0.3%	844,396	905,989	-6.8%	-12.8%
Mostkovice SPV 1	210	567 EUR	27,907	29,196	-4.4%	140,725	150,264	-6.3%	-12.5%
Mostkovice SPV 3	926	711 EUR	127,799	131,562	-2.9%	639,124	671,858	-4.9%	-12.0%
Zdice I	1,499	618 EUR	227,831	223,698	1.8%	1,102,930	1,151,578	-4.2%	-7.9%
Zdice II	1,499	618 EUR	227,701	227,222	0.2%	1,103,764	1,170,768	-5.7%	-9.2%
Radvanice	2,305	618 EUR	323,694	331,653	-2.4%	1,628,365	1,698,154	-4.1%	-10.2%
Břeclav rooftop	137	569 EUR	20,271	19,071	6.3%	97,882	104,978	-6.8%	-14.8%
Total Czech PP	14,996	623 EUR	2,158,516	2,156,671	0.1%	10,374,493	10,986,521	-5.6%	-9.7%
Babiná II	999	271 EUR	134,576	140,423	-4.2%	597,331	649,658	-8.1%	-15.4%
Babina III	999	271 EUR	134,457	139,481	-3.6%	563,279	657,475	-14.3%	-19.6%
Prša I.	999	270 EUR	140,404	147,222	-4.6%	643,734	686,230	-6.2%	-13.1%
Blatna	700	272 EUR	104,317	104,990	-0.6%	459,105	486,962	-5.7%	-11.4%
Mokra Luka 1	963	258 EUR	147,023	146,282	0.5%	742,575	745,816	-0.4%	-13.0%
Mokra Luka 2	963	257 EUR	147,569	145,441	1.5%	752,267	780,154	-3.6%	-13.1%
Jovice 1	979	263 EUR	122,415	121,792	0.5%	577,130	589,444	-2.1%	-9.7%
Jovice 2	979	263 EUR	121,861	120,805	0.9%	562,080	586,547	-4.2%	-11.4%
Brestovec	850	257 EUR	128,301	134,846	-4.9%	626,115	675,225	-7.3%	-14.4%
Polianka	999	261 EUR	138,768	140,898	-1.5%	613,603	654,757	-6.3%	-12.5%
Myjava	999	259 EUR	146,122	153,199	-4.6%	700,198	752,214	-6.9%	-12.1%
Total Slovak PP	10,429	264 EUR	1,465,811	1,495,380	-2.0%	6,837,415	7,264,483	-5.9%	-13.3%
Tiszakécske 1	689	78 EUR	113,116	106,604	6.1%	547,656	567,116	-3.4%	-9.8%
Tiszakécske 2	689	78 EUR	113,385	106,604	6.4%	550,850	567,116	-2.9%	-9.8%
Tiszakécske 3	689	78 EUR	112,086	106,604	5.1%	534,466	567,116	-5.8%	-9.6%
Tiszakécske 4	689	78 EUR	113,345	106,604	6.3%	552,323	567,116	-2.6%	-9.0%
Tiszakécske 5	689	78 EUR	103,242	106,604	-3.2%	538,814	567,116	-5.0%	-11.3%
Tiszakécske 6	689	78 EUR	113,099	106,604	6.1%	548,838	567,116	-3.2%	-9.8%
Tiszakécske 7	689	78 EUR	113,165	106,604	6.2%	549,724	567,116	-3.1%	-9.8%
Tiszakécske 8	689	78 EUR	112,417	106,604	5.5%	545,323	567,116	-3.8%	-9.1%
Almásfüzitő 1	695	76 EUR	109,957	104,144	5.6%	527,080	554,031	-4.9%	-12.1%
Almásfüzitő 2	695	75 EUR	107,323	101,159	6.1%	513,616	538,150	-4.6%	-11.9%
Almásfüzitő 3	695	75 EUR	105,632	100,979	4.6%	507,424	537,192	-5.5%	-13.2%
Almásfüzitő 4	695	76 EUR	110,044	104,271	5.5%	527,068	554,707	-5.0%	-12.3%
Almásfüzitő 5	695	76 EUR	111,310	105,700	5.3%	536,971	562,309	-4.5%	-12.0%
Almásfüzitő 6	660	76 EUR	110,773	105,105	5.4%	533,998	559,142	-4.5%	-11.9%
Almásfüzitő 7	691	76 EUR	111,052	104,618	6.1%	533,764	556,550	-4.1%	-11.6%
Almásfüzitő 8	668	76 EUR	112,431	102,924	9.2%	536,685	547,541	-2.0%	-8.7%
Nagyecsed 1	689	73 EUR	113,777	98,282	15.8%	547,963	531,676	3.1%	-7.6%
Nagyecsed 2	689	73 EUR	112,805	98,282	14.8%	544,626	531,676	2.4%	-7.6%
Nagyecsed 3	689	73 EUR	112,481	98,465	14.2%	541,441	532,187	1.7%	-8.9%
Fertod I	528	72 EUR	85,593	77,155	10.9%	421,657	410,453	2.7%	-9.4%
Fertod II No 2	699	73 EUR	108,810	103,438	5.2%	541,863	550,272	-1.5%	-10.6%
Fertod II No 3	699	73 EUR	108,598	102,974	5.5%	540,972	547,805	-1.2%	-10.0%
Fertod II No 4	699	73 EUR	108,363	102,162	6.1%	539,466	543,484	-0.7%	-9.7%
Fertod II No 5	691	73 EUR	108,093	101,127	6.9%	537,342	537,978	-0.1%	-10.3%
Fertod II No 6	699	73 EUR	107,970	101,848	6.0%	537,427	541,813	-0.8%	-9.5%
Kunszentmárton I/ 1	697	76 EUR	114,982	110,566	4.0%	567,473	588,192	-3.5%	-9.5%

	Photon Energy N.V.
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Project name	Capacity	Revenue June	Prod. June	Proj. June	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh,	kWh	kWh	%	kWh	kWh	%	%
Kunszentmárton I No 2	697	76 EUR	114,761	110,566	3.8%	562,219	588,192	-4.4%	-9.7%
Kunszentmárton II No 1	693	76 EUR	116,912	106,581	9.7%	549,865	566,994	-3.0%	-12.7%
Kunszentmárton II No 2	693	76 EUR	117,506	106,581	10.3%	575,915	566,994	1.6%	-9.1%
Taszár 1	701	74 EUR	104,920	96,314	8.9%	525,705	512,377	2.6%	-12.7%
Taszár 2	701	74 EUR	109,411	97,775	11.9%	529,457	520,148	1.8%	-13.7%
Taszár 3	701	74 EUR	112,105	98,042	14.3%	535,069	521,566	2.6%	-13.0%
Monor 1	688	74 EUR	110,765	105,956	4.5%	553,933	563,669	-1.7%	-10.6%
Monor 2	696	74 EUR	111,595	104,801	6.5%	546,842	557,524	-1.9%	-10.6%
Monor 3	696	74 EUR	112,252	106,029	5.9%	551,077	564,057	-2.3%	-11.1%
Monor 4	696	74 EUR	111,969	105,938	5.7%	549,333	563,571	-2.5%	-11.3%
Monor 5	688	74 EUR	112,022	101,820	10.0%	551,361	541,667	1.8%	-11.0%
Monor 6	696	74 EUR	111,202	105,818	5.1%	547,344	562,936	-2.8%	-11.6%
Monor 7	696	74 EUR	112,081	105,664	6.1%	549,191	562,118	-2.3%	-11.1%
Monor 8	696	74 EUR	112,336	106,481	5.5%	552,245	566,461	-2.5%	-11.2%
Tata 1	672	80 EUR	129,401	116,008	11.5%	574,456	617,141	-6.9%	-13.1%
Tata 2	676	76 EUR	105,284	116,432	-9.6%	495,775	619,401	-20.0%	-14.0%
Tata 3	667	76 EUR	105,555	116,432	-9.3%	496,337	619,401	-19.9%	-14.0%
Tata 4	672	80 EUR	131,041	118,039	11.0%	580,652	627,948	-7.5%	-13.8%
Tata 5	672	80 EUR	131,357	116,432	12.8%	576,210	619,401	-7.0%	-13.8%
Tata 6	672	80 EUR	130,089	113,495	14.6%	568,080	603,774	-5.9%	-12.5%
Tata 7	672	80 EUR	130,525	116,432	12.1%	566,933	619,401	-8.5%	-14.9%
Tata 8	672	80 EUR	131,555	118,188	11.3%	573,982	628,742	-8.7%	-14.8%
Malyi 1	695	74 EUR	113,233	104,019	8.9%	551,258	539,633	2.2%	-6.5%
Malyi 2	695	74 EUR	113,076	104,121	8.6%	551,528	540,273	2.1%	-9.3%
Malyi 3	695	74 EUR	113,353	104,121	8.9%	553,045	540,273	2.4%	-9.1%
Puspokladány 1	1,406	106 EUR	272,255	250,419	8.7%	1,226,480	1,332,187	-7.9%	-11.4%
Puspokladány 2	1,420	82 EUR	271,213	259,026	4.7%	1,252,533	1,377,975	-9.1%	-12.2%

Puspokladány 3	1,420	81 EUR	279,244	254,416	9.8%	1,251,103	1,353,454	-7.6%	-10.7%
Puspokladány 4	1,406	81 EUR	276,409	247,918	11.5%	1,240,789	1,318,882	-5.9%	-10.7%
Puspokladány 5	1,420	81 EUR	279,851	254,828	9.8%	1,281,085	1,355,645	-5.5%	-10.0%
Puspokladány 6	1,394	107 EUR	196,968	246,560	-20.1%	1,164,932	1,311,662	-11.2%	-15.7%
Puspokladány 7	1,406	106 EUR	274,932	253,260	8.6%	1,251,303	1,347,299	-7.1%	-9.8%
Puspokladány 8	1,420	81 EUR	271,402	255,093	6.4%	1,163,629	1,357,051	-14.3%	-16.7%
Puspokladány 9	1,406	106 EUR	276,513	253,633	9.0%	1,258,526	1,349,288	-6.7%	-9.4%
Puspokladány 10	1,420	81 EUR	277,444	254,719	8.9%	1,265,595	1,355,062	-6.6%	-9.5%
Tolna	1,358	79 EUR	284,551	260,253	9.3%	1,290,050	1,384,506	-6.8%	-11.9%
Facankert (Tolna 2)	1,358	79 EUR	290,917	264,639	9.9%	1,321,775	1,407,837	-6.1%	N/A
Total Hungarian PP	51,814	80 EUR	9,009,852	8,432,882	6.8%	42,640,444	44,846,598	-4.9%	-10.0%
Siria	5,691	90 EUR	1,115,376	1,195,000	-6.7%	4,198,760	4,710,011	-10.9%	N/A
Calafat 1	2,890	90 EUR	592,184	621,471	-4.7%	1,132,746	2,016,816	-43.8%	N/A
Calafat 2	1,935	90 EUR	365,953	418,744	-12.6%	765,485	1,355,709	-43.5%	N/A
Calafat 3	1,203	90 EUR	264,716	262,858	0.7%	515,315	932,295	-44.7%	N/A
Aiud	4,730	90 EUR	858,360	906,000	-5.3%	1,341,480	3,952,000	-66.1%	N/A
Teius	4,730	90 EUR	695,580	930,000	-25.2%	1,015,020	4,064,000	-75.0%	N/A
Total Romanian PP2	21,179	90 EUR	3,892,169	4,334,073	-10.2%	8,968,806	17,030,831	-47.3%	N/A
Symonston	144	218 EUR	8,500	7,990	6.4%	76,617	84,668	-9.5%	-4.5%
Leeton	7,261	51 EUR	734,970	775,612	-5.2%	7,491,434	7,720,138	-3.0%	8.7%
Fivebough	7,261	56 EUR	672,030	758,621	-11.4%	7,012,035	7,613,192	-7.9%	3.1%
Total Australian PP	14,744	55 EUR	1,415,500	1,542,222	-8.2%	14,580,087	15,417,998	-5.4%	1,415,500
Total	113,084	161 EUR	17,941,848	17,961,228	-0.1%	83,401,245	95,546,431	-12.7%	3.5%

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 / pro-

jection for Month) - 1.

YTD Prod.: accumulated production year-to-date i.e. from January until the end of the reporting month.

YTD Proj.: accumulated projection year-to-date i.e. from January until the end of the reporting month.

Perf. YTD: performance of the pp YTD i.e. (YTD prod. in 2023 / YTD proj. in 2023) – 1. YTD YOY: (YTD Prod. in 2023 / YTD Prod. in 2022) – 1.

1 - Green Bonus + realized electricity price during the reporting period in the Czech Republic.

- Realized electricity price in Hungary and Romania

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

2,000 4,000 6,000 8,000 10,000 12,000 14,000

Chart 1.a Total Production of the Czech Portfolio Chart 1.b Total Production of the Slovak Portfolio

Q1 Q2 July

Chart 1.c Total Production of Hungarian Portfolio Chart 1.d Total Production of Australian Portfolio

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.

Portfolio	Capacity	Prod. July	Avg. Revenue July	Total Revenue July	YTD Avg. Revenue	YTD Revenue
Unit	MWp	MWh	EUR/MWh	In Euro thousand	EUR/MWh, in 2023	In Euro thousand
Czech Republic	15.0	2,159	623	1,344	648	6,723
Slovakia**	10.4	1,466	264	279	263	1,298
Hungary	51.8	9,010	80	725	93	3,966
Romania	21.2	3,892	90	350	95	850
Australia	14.7	1,416	55	77	73	1,070
Total Portfolio	113.1	17,942	161	2,775	173	13,908

Table 2. Estimated Revenues from Electricity Generation in July 2023*

* Estimates for revenues are based on management reporting and may deviate from published financial statements due to exchange rates.

** Slovak joint-ventures SK SPV 1 s.r.o., Solarpark Polianka s.r.o., and Solarpark Myjava s.r.o. are consolidated at equity only and therefore not presented in the above table.

4. Reporting on the Project Pipeline

Project development is a crucial activity in Photon Energy's business model with the ultimate goal of expanding the PV proprietary portfolio and recurring revenues of the Group going forward. For financial or strategic reasons Photon Energy may decide to cooperate with third-party investors either on a joint-venture basis or with the goal of exiting the projects to such investors entirely. Ownership of project rights during development stage provides Photon Energy with a high level of control and allows locking in EPC (oneoff) and O&M (long-term) services. Hence, project development is a key driver for Photon Energy's future growth. The Group's experience in project development and financing in the Czech Republic, Slovakia, Germany, Italy, Hungary and Romania is an important factor in selecting attractive markets and reducing the inherent risks related to project development.

The below table presents PV projects under the development divided by the stage of the advancement and by country.

Table 3.1 Projects under development in July 2023 (DC capacity)*

Country	1. Feasibility*	2. Early development	3. Advanced development	4. Ready-to-build technical	5. Under construction	Total in MWp
Romania	11.8	92.6	70.5	18.6	30.3	223.2
Poland	275.1	34.1	3.9	-	-	313.1
Hungary	27.6	-	2.7	4.0	-	34.4
Australia	455.0**	200.0	9.8	-	-	664.8
Total in MWp	769.5	326.7	86.9	22.6	30.3	1,235

*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 3.1 Project pipeline as of the reporting date, in MWp DC

In July the pipeline of projects under development increased by over 300 MWp compared to June 2023. Most important changes include:

► In Australia four new projects at feasibility stage in the amount of 455 MWp AC were added to the pipeline, all of which are located in New South Wales. All these projects are developed using RayGen technology and assume a total estimated energy storage of 3.5 MWh.
► RayGen's first energy storage project of 50 MWh in Carwarp Victoria is progressing well, with an official event scheduled for late August.
► Yadnarie's project DC capacity has been reduced from 300 MWp DC to 200 MWp as a consequence of the geotechnical investigation and environmental studies, which resulted in a revision of the areas of land suitable for the

construction of the power plant and a decision to down-size the project by 100 MWp at the DC level. At the same time AC capacity has been reduced by 35 MWp from 150 MWp to 115 MWp.

► In Hungary, due to changes in regulations and challenges in the development process connected to the reclassification of the zoning areas required for the building permit some projects in early development stage and under feasibility studies were recalibrated, resulting in downsizing the Hungarian pipeline down by 34 MWp.
► In Romania 3.1 MWp power plant located in Faget town, Western Romania was grid connected as of 10 August and is currently in the testing phase.

Country	Location	Dev. phase	Equity share	MWp DC	Commercial Model	Land	Grid con nection	Construction permit	Expected SoC1	Update on the project
Romania	Tamadu Mare-1	4	100%	4.2	Merchant/PPA	Secured	Secured	Secured	Q4 2023	Projects adheres to DSO schedule for grid reinforcement works
Romania	Tamadu Mare-2	4	100%	6.5	Merchant/PPA	Secured	Secured	Secured	Q4 2023	Projects adheres to DSO schedule for grid reinforcement works
Romania	Sannicolau Mare	4	100%	7.8	Merchant/PPA	Secured	Secured	Secured	Q4 2023	Project awaits DSO relocation of overhead cable prior to start of construction.
Hungary	Tolna 2	4	100%	1.3	Merchant/PPA	Secured	Secured	Secured	Q2 2024	Construction date delayed due to DSO commissioning timeline.
Hungary	Tolna 3	4	100%	1.3	Merchant/PPA	Secured	Secured	Secured	Q2 2024	Construction date delayed due to DSO commissioning timeline.
Hungary	Tolna 5	4	100%	1.3	Merchant/PPA	Secured	Secured	Secured	Q1 2024	Construction date delayed due to DSO commissioning timeline.
TOTAL				22.6

Table 3.2. Progress on Projects Ready-to-Build stage 4, as of the reporting date.

¹SoC stands for expected start of construction date.

Table 3.2. Progress on projects under construction, as of the reporting date.

Country	Location	Dev. phase	Equity share	MWp DC	Commercial Model	Construction progress
Romania	Sahateni 1	5	100%	7.1	Merchant/PPA	100%
Romania	Faget 1	5	100%	3.1	Merchant/PPA	100%
Romania	Faget 2	5	100%	3.9	Merchant/PPA	59%
Romania	Sarulesti	5	100%	3.2	Merchant/PPA	52%
Romania	Magureni	5	100%	1.7	Merchant/PPA	49%
Romania	Bosca	5	100%	3.8	Merchant/PPA	28%
Romania	Faget 3	5	100%	7.5	Merchant/PPA	48%
TOTAL				30.3
Procurement		Site preparations			Substructures	Technology installed	Connection works	Comissioning

Projects Highlights:

In the reporting period the following projects shall be highlighted:

► Făget 2 Project (3.9 MWp-DC) located in Făget Town, Western Romania.

Ready-to-Build (RtB) stage on Faget 2 project was reached early in May 2023 and the construction works were kicked off on 15 May 2023. The technology procured includes Longi bifacial PV modules, Huawei inverters and singleaxis trackers provided by Zimmermann PV Tracker.

The DC capacity amounts to 3.5 MWp and AC to 3.0 MWp and it is secured with E-Distribuție Banat SA as DSO. The construction process is very advanced (59% of construction works has been completed till the reporting date) and the commissioning of this power plant is planned for Q3 2023. The delivery of the upgraded trafo station represents a critical point of the project and poses the highest risk for any delays in the commissioning process.

Some of the projects highlights include the specific features such as: a) very short grid connection, b) supplementary plots of land which were acquired in order to maximize the installed capacity, .and c) upgraded access road by the co-developer.

The off-take model is of the merchant type and the annual generation expected is of 5.6 GWh, at P90 annual production probability. The construction works are financed from Group's cash flow and the project shall be refinanced upon commissioning.

► Magureni Project (1.7 MWp-DC) located in Commune of Sarulesti, village of Magureni, in Romania.

Ready-to-Build (RtB) stage on Magureni project was reached on 22 February 2023 however, the official mandatory communications documents toward the Sarulesti Townhall and Construction State Inspectorate (ISC) set the start of construction date for 17 April 2023.

The technology procured consists of PV panels and invertors of various tier-one producers including Longi and Jinko to be mounted on the single-axis trackers. The DC and AC capacities for the project were secured with E-Distribuție Banat SA as respective DSO and are as follows: a) DC power-1700.01 kWp, and b) AC power-1250 kW. The construction process is advanced (49% of works are completed till the reporting date) and the commissioning is planned for Q3/Q4 2023.

The off-take model is of the merchant type and the annual generation expected is of 2.2 GWh, at P90 annual production probability. Specific features of the project include: a) very short grid connection line (50m), and b) access road upgraded by the co-developer.

The delivery of the trafo station represents a critical element of the project and poses the highest risk for the commissioning date and possible delays on that front.

The project is financed from Group's cash flow and shall be refinance upon commissioning.

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 be-tween 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. Other Business Updates

Please refer to our Management Report and Interim Financial Statements for H1 2023 published as of 16.08.2023 for any most updates on the business developments.

6. Investors' calendar

► 13 September 2023: Monthly report for August 2023
► 12 October 2023: Monthly report for September 2023
► 13 November 2023: Entity and consolidated quarterly reports for Q3 2023
► 14 November 2023: Online presentation of Photon Energy Group's Q3 2023 results
► 14 November 2023: Monthly report for October 2023
► 13 December 2023: Monthly report for November 2023

7. Investor Relations Contact

E-mail: [email protected]

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

Amsterdam, 17 August 2023

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

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