Polish Energy Partners Spółka Akcyjna with its registered office in Warsaw (‘PEP’) hereby announces that on 29th July 2014 PEP’s subsidiary – Grupa PEP – Farma Wiatrowa 4 Sp. z o.o. with its registered office in Warsaw (‘Company’) – and Polenergia Obrót S.A. with its registered office in Warsaw (‘Polenergia’) – a subject being a part of Polenergia Holding S.a.r.l. with its registered office in Luxembourg, concluded an agreement on sale of property rights to certificates of origin of electricity from RES (‘Agreement’).
Pursuant to the Agreement, the Company is obliged to sell to Polenergia the property rights arising from the certificates of origin of the electricity produced from RES (‘Rights’), whereas Polenergia is obliged to purchase these Rights from the Company.
The Company’s remuneration under the Agreement will be calculated as a product of the number of the Rights sold and the rate specified in the Agreement. The number of the Rights to be sold will be determined based on the volume of renewable energy generated by the Company.
The Agreement will be valid until the day falling 15 years from the date of the Company’s obtaining the license for production of electricity from RES (Skurpie Wind Farm).
In the case of the Company’s failure to deliver the minimum number of Rights to be provided in a given year, the Company will be required to pay to Polenergia a contractual penalty, the amount of which will depend on the size of the shortfall. Moreover, in the event of the Agreement termination for reasons attributable to the Company, the Company will be required to pay a contractual penalty in the estimated value of the Rights to be delivered till the end of the original term of the Agreement – the Company will be entitled to the analogous right in the event of the Agreement termination for reasons attributable to Polenergia. The Agreement allows for the possibility to seek supplementary compensation.
The estimated total (i.e. throughout its entire term) net value of the Agreement is approximately PLN 405 million.
Since the value of the Agreement throughout its entire term exceeds 10% of PEP’s equities, it was classified as a material one.