PGE Polska Grupa Energetyczna S.A.

Legal Proceedings Report • Apr 8, 2021

Granting of contracts for difference for PGE's offshore wind farms

The Management Board of PGE Polska Grupa Energetyczna S.A. (PGE)discloses that on April 7, 2021 it has taken information, that thePresident of the Energy Regulatory Office has awarded right to covernegative balance of electricity (the "Contract for Difference", "CfD")to the Baltica 3 and Baltica 2 offshore wind farms with a total capacityof up to 2.5 GW. The right to the CfD guarantees a price at a maximum ofPLN 319.60/MWh in accordance with the Decree of the Minister of Climateand Environment of Poland and the Act of December 17, 2020 on promotingelectricity generation in offshore wind farms. The CfD award is subjectto final approval from the European Commission. Baltica 2 and Baltica 3projects are being developed by PGE as two parts of the larger projectBaltica offshore wind farm in co-operation with Ørsted on the ground ofthe investment agreement, about which PGE informed in its current reportno. 3/2021 dated February 10, 2021.