Baltica 1 – Completed works:

• An offshore survey was carried out as part of the initial geotechnical campaign.
• The Maritime Office in Gdynia has issued an agreement setting out the conditions for the project.
• An Environmental Impact Assessment (EIA) Report for the offshore wind farm site has been submitted to the Regional Directorate for Environmental Protection (RDOŚ).
• A report on the transboundary impact of the OWF (the so-called Espoo Report) was submitted to the Regional Directorate for Environmental Protection (RDOŚ).
• A letter was sent by the General Directorate for Environmental Protection (GDOŚ) to the affected States to initiate transboundary consultations in accordance with the Espoo Convention.
• Work is underway to prepare a position paper on the comments received on the Espoo environmental proceedings.
• An EIA Report for the power derivation infrastructure is being developed.
• The second year of environmental studies has been completed.

Baltica 2 – Completed works:

• Contracts were signed with key contractors for the implementation phase, including agreements for the charter of installation vessels for wind turbines, offshore transformer stations, the construction of the onshore grid connection, and the supply of foundations.
• Notices to Proceed (NtP) were issued for the supply of inter-array cables and foundations, as well as for the construction of the onshore grid connection.
• A decision was obtained from the Ministry of Climate and Environment (MCE) approving the Geological and Engineering Documentation (DGI) for the Baltica 2 wind farm area.
• Offshore inspection and clearance works were completed within the Baltica 2 offshore wind farm area; no objects were identified.
• Baseline bird monitoring was completed, meeting the requirements for commencing offshore construction works for Baltica 2.
• The foundations for the 275 kV GIS and 400 kV GIS buildings at the Baltica 2 Onshore Substation were completed.
• A Preliminary Lease Agreement (PLA) was signed for the Port of Ustka, covering both the Operations and Maintenance (O&M) base and the construction support facilities.
• The final investment decision was made in the first quarter of 2025 – the project was handed over for implementation.

Baltica 3 – Completed works:

• A decision was obtained from the Ministry of Climate and Environment (MCE) approving the Geological and Engineering Documentation (DGI) for the Baltica 3 export cable.
• Work is ongoing on the application to the Regional Directorate for Environmental Protection (RDEP) to separate the environmental decisions for Baltica 2 and Baltica 3.
• The electrical concept design for Baltica 3 was completed.
• Autumn bird migration surveys for Baltica 3 were completed.
• Work has commenced on extending the deadline for the first generation of electricity from the offshore wind farm without losing the right to cover a negative balance (application submitted to the Energy Regulatory Office – URE).

Baltica 9 – Completed works:

• A procurement procedure was launched for geophysical surveys for Baltica 9.
• A procurement procedure was launched for supervision of geophysical and geotechnical surveys for Baltica 9.
• An application was submitted for the Permit for Laying and Maintenance of Cables (PLMC) within the Territorial Sea and Exclusive Economic Zone of the Baltic Sea.

Completed works on the development of offshore wind farms:

• Finalization of the tender procedures for the General Contractor and Contract Engineer for the Operations and Maintenance (O&M) base in the Port of Ustka.
• Building permit obtained for the O&M base in Ustka.
• Site preparation works carried out in Ustka for the construction of the O&M base, including demolition works.

• Installed capacity at 2024EOY: 797 MW.
• Continued development of proprietary projects: approximately 500 MW.
• Secured grid connection conditions: approximately 40 MW.
• Analysis of acquisition projects: approximately 180 MW.

• Installed capacity at 2024EOY: 230 MW (of which 33 MW projects connected without final acceptance).
• Projects under implementation at 2024 year-end with a total installed capacity of 205 MW.
• Advanced development stage for projects with a total capacity of 770 MW.

• A contract was signed with an environmental consultant for the preparation of the necessary documentation required to apply for an environmental decision for the construction of the Młoty Pumped Storage Power Plant (PSPP), including obtaining the final environmental decision on behalf of and for the benefit of the Client.
• Annex No. 1 was signed to the Legal Services Agreement concerning the public procurement procedure for selecting the contractor for the construction of the Młoty PSPP.
• Grid connection conditions were obtained for connecting the Młoty PSPP to the transmission network.
  • By the end of 2024, the PGE Capital Group had secured grid connection conditions for energy storage projects with a total capacity of 1,093 MW.
  • PGE Capital Group is simultaneously developing energy storage projects within its distribution network operations. By the end of 2024, seven projects were underway in two distribution companies – PGE Dystrybucja S.A. and PGE Energetyka Kolejowa S.A. – with a combined capacity of 80.5 MW.
  • In 2024, grid connection conditions were obtained for an energy storage installation in Kraków with a capacity of 92.4 MW.
  • Grid connection conditions were also secured for energy storage facilities located at wind farms: Lotnisko, Ścieki, Wojciechowo, and Pelplin, with a total capacity of approximately 190 MW.
  • Additional grid connection conditions were obtained for the Distributed Energy Storage project, increasing the total secured capacity under this project to 141 MW.
  • A tender procedure was carried out for the design and construction of an energy storage facility in Żarnowiec and offers meeting the tender requirements were received.
  • Tender procedures were announced for energy storage installations at Warta, Jeziorsko, and Cisna within PGE Dystrybucja S.A.
  • Tender documentation was prepared for energy storage projects at PGE Energetyka Kolejowa S.A.
  • A procurement procedure was conducted, and a contract was signed for geotechnical ground surveys for the energy storage project in Gryfino.A contract was signed for conducting a legal audit of the real estate.
  • Completed works on the development of the Młoty PSPP (Pumped Storage Power Plant):
  • A Local Information Point was opened in Bystrzyca Kłodzka.

Gryfino power plant

• In May, PGE Gryfino Dolna Odra sp. z o.o. obtained a license to trade in electricity.
• In August 2024, unit 9 was commissioned.
• Unit 10 was commissioned in October 2024.

Nowy Rybnik power plant

• Continuation of works on the construction site of the CCGT unit at the Nowy Rybnik Power Plant.

• New Czechnica CHP Plant: Commissioning of the peak and backup boiler house. Ongoing construction of the gas-steam unit, with the first synchronization of the steam turbine generator completed.
• Gdańsk CHP Plant: Environmental Decision obtained for relocation of the coal yard, demolition works and heat accumulator.
• Gdynia CHP Plant: Building Permit obtained for gas engines and commencement of construction works. Construction works on the gas pipeline underway. Contract signed for the construction of a biomass boiler (2×15 MWt).
• Gorzów CHP Plant: Commissioning of the peak and backup boiler house.
• Kraków CHP Plant: Building Permit obtained for gas engines. Tender procedure announced for the selection of the General Contractor (GRI) for the cogeneration units.
• Lublin CHP Plant: Completion of construction and assembly works on the peak and backup boiler house.
• Rzeszów CHP Plant: Commissioning of the new peak and backup boiler house.
• Rzeszów ITPOE (Thermal Waste Conversion Plant): Continued construction works on the second process line of the Thermal Waste Conversion Plant with Energy Recovery.
• Wrocław CHP Plant: Investment analyses conducted for an additional cogeneration engine and electrode boilers at the Wrocław CHP Zawidawie site.
• Bydgoszcz II CHP Plant: Completion of installation of all equipment and systems.
• Kielce CHP Plant: Commissioning of the gas unit.

• Sales of PV installations and Energy Storage Facilities (up to 50 kWp), with a total capacity of 16.6 MWx (MWp + MWh); 1,412 contracts signed.
• Continued sales of the “PV for a Tenner” [PV za dychę] offer (covering both PV installations and Energy Storage Facilities).
• Launch of the product “Photovoltaics with PGE for Business” [Fotowoltaika z PGE dla Biznesu], offering PV installations with a capacity exceeding 50 kWp and Energy Storage Facilities.
• Support for customers in submitting applications to the “My Electricity” [Mój Prąd] grant program.
• Work in progress on the launch of a marketplace platform for potential virtual prosumers.

• Development of a research agenda for PGE Energetyka Kolejowa S.A.
• The implementation phase began for a project focused on identifying biodiversity issues within railway energy infrastructure, aimed at mitigating climate change.
• A positive recommendation was received for the project entitled “Intelligent Traction Network Measurement System Based on Advanced Digital Technologies”.

Retained leadership in customer service, with the following results:

• 1^st place in tariff G – category: overall satisfaction with Contact Centre interactions.
• 2^nd place in Customer Service Offices (BOK) for tariff G – category: overall satisfaction with customer contact.

• In 16 cities, new customer connections were completed with a total contracted heat demand of 149 MWt, equivalent to the heat demand of a medium-sized city – approximately 700 new buildings.
• In markets where the company PGE Energia Ciepła operates solely as a heat producer, buildings with a total demand of 122 MWt were connected. In markets where the Company functions as an integrated entity, also acting as a heat distributor, buildings with a demand of 27 MWt were connected.
• 71% of new connections were carried out in three major cities: Kraków, Wrocław, and Gdańsk.
• The District Heating segment connected buildings in the primary market – newly constructed buildings – with a heat demand of 113 MWt. In the secondary market – buildings that switched to district heating from alternative heat sources – connections amounted to 36 MWt.
• The decrease in the level of new connections compared to previous years results from projects being implemented in accordance with more restrictive technical building standards (WT2021), as opposed to the previous regulations.
• Additionally, within district heating systems, approximately 9,000 flats were connected to domestic hot water installations through the elimination of gas heaters in 2024. The outlook for this market in 2025 remains stable. This segment is particularly important for the District Heating segments as it builds heat demand during the summer period, and activities in this area will continue.
• As part of energy efficiency initiatives in 2024, 400 energy efficiency certificates were obtained.

Achievement of targets related to quality regulation:

• The Company met its objectives for reducing the duration of power supply interruptions (CTP), measured in minutes, for the following areas: cities with county rights: 39 minutes, towns: 91 minutes, rural areas: 346 minutes. It also achieved targets for the frequency of interruptions (IF): cities with county rights: 0.8, towns: 1.7. The only indicator where performance did not improve was the IF for rural areas, which remained at 6.00.

Supporting asset management objectives:

• Organization of workshops for contractors performing tree cutting to familiarize them with work execution guidelines, along with the introduction of a Tree Cutting Instruction Manual for external contractors.
• Launch of a pilot project: “Cleaning of MV/HV Substation Electrical Equipment Using PPN Technology”.

• Extension of the “Heat Pumps with PGE” [Pompy Ciepła z PGE] offer to include mandatory Energy Audits, as required under the Clean Air program.
• Adjustment of the “Heat Pumps with PGE” product offer to meet the requirements of the Clean Air program regarding the so-called ZUM List [list of green devices and materials].
• Customer support in submitting applications for funding under the Clean Air program.

• Implementation of Customer Service principles aligned with the PGE Capital Group policy.
• Actions taken to mitigate risks related to personal data protection.
• Activities carried out to ensure full compliance of business operations with applicable laws and internal regulations.

Acquisition of approximately PLN 827 million in preferential funding, including:

• PLN 816 million in grants for PGE Dystrybucja S.A. for the development of smart power grids (PLN 721 million) and the Remote Meter Reading Program (Second Call) (PLN 94 million);
• PLN 1 million for PGE GiEK S.A. and PGE Energetyka Kolejowa S.A. for research and development (R&D) activities;
• PLN 10 million for EC Zielona Góra S.A. for the construction of a photovoltaic installation dedicated to the generation of electricity for own use.

• Successful participation in the CHP auction for gas engines – Stage II in Kraków (PLN 1.27 billion) and gas engines in Pomorzany (PLN 0.56 billion)
• Applications submitted for funding of projects with a total value of PLN 881 million.

In 2024, the implementation of the following projects continued:

LTE450

• A contract was signed with Ericsson for the purchase and implementation of power systems for the LTE450 network, and Stages 1 and 2 of the modernization and adaptation of telecommunications towers for PGE Dystrybucja S.A. were completed.
• The Final Acceptance Report was executed for the deployment of the OSS system in the production environment, and the modernization and integration of telecommunication transmission systems in the PGE Dystrybucja branches were completed.
• Completion of tasks related to the modernization and integration of access and aggregation systems in PGE Dystrybucja branches, including the delivery and commissioning of radio links and the procurement and installation of DWDM equipment.
• Launch of the procurement procedure for Stage 3 of the modernization and adaptation of telecommunications towers for the construction of the LTE450 network.

CDM (Central Power Dispatch)

• Subsidy was secured for the project under the National Recovery and Resilience Plan.
• Construction works related to the building of the CDM headquarters were carried out (an annex to the contract with the contractor is currently under review).
• Procedures were initiated for the conclusion of a contract to integrate the CDM facility with the PGE Capital Group ICT network and to launch the necessary services.
• Ongoing work related to the procurement of components and integration of the facility with the PGE Dystrybucja S.A. OT network.
• Preparatory work undertaken for the procurement process for the delivery and implementation of the SCADA system.

TZMD (Technical Management of Distribution Assets)

• Revisions were made to the assumptions for the TZMD Program, and an RFI process was conducted for the pricing of GIS and EAM components.
• A WKR enquiry (Preliminary Market Consultation) was conducted for the Asset Passporting Project, and the total budget for the TZMD Program was estimated.
• An implementation model was developed for the TZMD System, based on the GIS component, including asset passporting and data maintenance functionalities, and the scope of the SAP ECC system customization was defined.
• Recommendations were obtained from the Steering Committee of the TZMD Program and the PGE Capital Group Investment Committee regarding the launch of the GIS component implementation, along with the associated IT environment