Energa S.A.

Regulatory Filings • Dec 20, 2021

Current report No. 40/2021

Date: 20 December 2021

Subject: Preliminary results of the capacity market main auction for2026 published by Polskie Sieci Elektroenergetyczne S.A.

Legal basis: Article 17(1) MAR - inside information

Following the current report No. 38/2021 dated 16 December 2021, theManagement Board of Energa SA ("Issuer") announces that on 20 December2021 Polskie Sieci Elektroenergetyczne S.A. published preliminaryresults of the capacity market main auction for 2026, including theclosing price for the capacity auction which is 400.39 PLN/kW/year.

The Energa Group companies concluded the following capacity agreements:

1) 981.738 MW for existing units and Demand Side Response (with a 1 yearcapacity contract),

2) 1,214.321 MW for planned gas and steam units in Ostrołęka (695.951MW) and Grudziądz (518.370 MW), the construction of which, according tothe assumptions, is to be carried out by the companies CCGT OstrołękaSp. z o.o. and CCGT Grudziądz Sp. z o.o., respectively (with a 17 yearscapacity contract).

The total revenues of the Energa Group in the year 2026 from theabove-mentioned contracts may amount to ca. PLN 879.2 million.

With regard to the long-term contracts, the Issuer informs that theexpected annual revenues, starting from year 2026, may amount to ca. PLN278.6 million (total revenues over the period of 17 years may amount toca. PLN 4.73 billion) for CCGT Ostrołęka Sp. z o.o. and ca. PLN 207.5million (total revenues over the period of 17 years may amount to ca.PLN 3.52 billion) for CCGT Grudziądz Sp. z o.o., whereas the price ofthe capacity obligation for long-term capacity contracts will be subjectto an annual indexation of the average annual consumer price index.

The auction closing price provided does not constitute the finalcapacity auction result. The final results of the capacity auction shallbe announced by the President of the Energy Regulatory Office in thePublic Information Bulletin on his website, on the first working dayfollowing the 21st day after the end of the capacity auction. Untilthen, all capacity contracts are concluded under the condition precedent.

Only if the final auction results differ from the interim results, willEnerga SA publicly announce adjusted data.