Result of main capacity market auction for the year 2021

The Management of PGE Polska Grupa Energetyczna S.A. ("PGE") disclosesthat on November 15, 2018, as a result of capacity market auction forthe year 2021 (the main auction), total capacity obligation of not lessthan 11 652 MW has been contracted for generation units owned by PGEGroup. Auction clearing price has been set within the range of218.56-240.40 PLN/kW/year and - on the basis of article 38 par. 1 of theCapacity Market Act of December 8, 2017 - the price will be disclosed byPSE S.A within 3 business days.

Total capacity obligation involves:

- 1 944 MW for new units (15-years capacity contract)

- not less than 2 698 MW for units being modernized (including 2 419 MWwith 5-years capacity contract and 280 MW with 7-years capacity contract)

- 7 009 MW for existing units (1-year capacity contract)

The above capacity obligations are not final results of capacityauction. Final results are to be published by the President of EnergyRegulatory Office on its website (in the section Biuletyn InformacjiPublicznej) on the first business day following 21st day after the closeof capacity auction. Until then all capacity obligation contracts areconditional.