Signing of the agreement for construction of an energy storage facilityin Żarnowiec

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")discloses that on March 7, 2025 PGE Inwest 14 Sp. z o.o., a company fromthe PGE Capital Group, signed an agreement (the "Agreement") with LGEnergy Solution Wrocław Sp. z o.o. (the "Contractor") which subjectmatter is the construction of the Energy Storage Facility in Żarnowiec("ESF") along with the electricity grid connection.

The available discharging power of the ESF will be 262.2 MW and theavailable charging power 269.4 MW. Nominal capacity will amount toapprox. 981 MWh and efficiency of the storage facility - 85.2%. Anelectricity connection linking the ESF with the Żarnowiec substation(owned by the Transmission Grid Operator) will be built as part of theinvestment (aside from construction of the energy storage units).

The Contractor commits to design and realise the ESF in "turnkey"formula (EPC - Engineering, Procurement, Construction). According to theclauses of the Agreement, the commissioning date is set at April 30,2027.

The value of the Agreement amounts to PLN 1 264 227 642.28 net (PLN 1555 000 000.00 gross).

The Agreement provides for contractual penalties for the Contractorrelated to, among others, failure to meet the deadline for commissioningof the ESF, failure to comply with the guaranteed nominal capacity,failure to meet the guaranteed power or to meet guaranteed efficiency ofthe storage facility. The total sum of contractual penalties resultingfrom all failures as provided for in the Agreement cannot exceed 25% ofthe net value of the Agreement.

The Agreement also includes an indexation clause which takes intoaccount potential increase of the Contractor's remuneration in certaincases and the maximum indexation of the remuneration due to the abovecannot exceed 10% of the Agreement's value.

The Management Board of PGE additionally informs that the ESF wasawarded a 17-year capacity market contract for delivery year 2029 withthe capacity obligation at the level of 137.925 MW.