PGE Polska Grupa Energetyczna S.A.

Regulatory Filings • Jan 3, 2020

Approval of the offer by the consortium of General Electric and Polimexfor construction of CCGT units in Dolna Odra power plant

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")discloses that on January 3, 2020 the Management Board of PGE Górnictwoi Energetyka Konwencjonalna S.A. ("PGE GiEK", PGE's subsidiary) hasdecided to accept the offer of the consortium consisting of GeneralElectric Global Services GmbH (Consortium leader), Polimex MostostalS.A. and General Electric International Inc. submitted in the proceeding"Construction of two CCGT units in PGE GiEK S.A. Branch ZespółElektrowni Dolna Odra". Net value of the offer for the construction ofunits amounts to approx. PLN 3.70 billion and the related 12-yearservice agreement to approx. PLN 1.03 billion.

The conclusion of the contract for the construction of units is planneduntil the end of February 2020. The project start date will bedetermined after the conclusion of the contract and after theelaboration of a detailed task implementation schedule. With accordanceto the conditions set out in the in the Terms of Reference, PGE GiEKS.A. expects that the commissioning of the new units will take place inDecember 2023. The Management Board of PGE indicates that the plannedCCGT units in Dolna Odra power plant were among the generating unitsthat obtained a 17-year contract in the main capacity market auction fordelivery year 2024.