CONCLUSION OF THE PPA AND PPA+ AGREEMENT BY A SUBSIDIARY OF THE ISSUER

The Management Board of the company under the name Polenergia S.A. (“Issuer”), announces that on 8 February 2024 the Issuer’s subsidiary Polenergia Obrót S.A. (“POLO”) entered into PPA and PPA+ Agreements  with Mercedes-Benz Manufacturing Poland Sp. z o.o. with its registered office in Jawor (“Buyer”), (“PPA and PPA+ Agreements”) The PPA and PPA+ Agreements concern the sale of all electricity consumed by the Buyer, including a portion of the electricity produced by the following renewable energy source installations: the Dębsk wind farm with an installed capacity of 121 MW (“RES Installation 1”) and the Sulechów 3 photovoltaic farm with an installed capacity of 9.84 MW (“RES Installation 2”), as well as guarantees of origin of electricity from renewable energy sources in a number corresponding to  the amount of electricity sold, and commercial balancing of the Buyer’s needs.

The period for the sale of electricity and guarantees of origin under the PPA and PPA+ Agreements shall commence from 1 March 2024 and last until 31 December 2027, with the commencement of the sale of electricity and guarantees of origin being subject to the successful completion of the process of switching to POLO as the electricity seller Buyer’s needs. In the event that the process of change of electricity seller to POLO is not completed by 29 February 2024 and if POLO and the Buyer do not agree on a different date for completion of the indicated change of seller process, the PPA and  PPA+ Agreements may be terminated by either party with immediate effect.

With regard to the sale of electricity produced by RES Installation 1 and RES Installation 2, the planned volume of electricity sales refers to a certain proportion of the volume to be produced by RES Installation 1 and RES Installation 2 during this period. The electricity produced by RES Installation 1 and RES Installation 2 will be sold at a fixed price, with the proviso that the price may be increased or decreased depending on the amount of the averaged CPI – the average annual index of prices of total consumer goods and services for the previous calendar year, published by the Polish Central Statistical Office. The remaining volume of electricity consumed by the Buyer will be sold at a price based on prices on the SPOT market on the exchange commodity market of the Polish Power Exchange, or at a fixed price for a specific volume of electricity, if such a fixed price is established in accordance with the procedure set out in the PPA+ Agreement. The total estimated amount of revenues from the sale of electricity and guarantees of origin under the PPA and PPA+ Agreements may amount to approximately PLN 131,414,173.53 net.

In the event of early termination of the PPAs and PPA+ Agreements by POLO or the Buyer, respectively (the “Non-Breaching Party”), due to breaches of the agreement by the other party (the “Breaching Party”) as set out in the agreement, the Non-Breaching Party shall be entitled to a termination fee in the amount set out in the agreement.

Signing a multi-year energy sales contract with a customer with a stable financial position is an action that is in line with Grupa Polenergia’s long-term strategy of commercialisation of generation sources. Such a model secures the revenue stream realised in Grupa Polenergia and makes it independent of any fluctuations in  energy market prices that may occur.

Legal basis: article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ EU. L. 2014 No. 173, p. 1 as amended).