Conclusion by Polkomtel sp. z o.o. of a long-term agreement for the supply of electric energy from a photovoltaic farm

12 Mar 2021

The Management Board of Cyfrowy Polsat S.A. (the “Company”) hereby informs that on 12 March 2021 Polkomtel sp. z o.o., the Company’s subsidiary (“Polkomtel”) and PAK-PCE Fotowoltaika Sp. z o.o. (“PAK”) concluded a power purchase agreement for the total volume of energy produced by a photovoltaic farm with the target capacity of 70MWp, which is being constructed on reclaimed lands located in Brudzew and formerly exploited as mining areas, with the construction being executed, pursuant to a contract signed on 23 September 2020, by a consortium including the company Esoleo sp. z o.o., in which the Company has a majority holding, (“PPA”).

The PPA has been concluded for 15 years with the possibility of a 5-year renewal by Polkomtel and provides for a specified price that is to be inflation-linked starting from 2023. Under the PPA, PAK will be obligated to supply the entire volume of energy produced. Along with the energy and within the agreed contractual price PAK will submit to Polkomtel certificates of origin for the entire purchased volume of energy. Concurrently, Polkomtel undertook to maintain the currently held concession for the sale of energy for the term of the PPA.

Assuming the current inflation forecasts, the total value of the 15-year liability of Polkomtel under the PPA will amount to c. PLN 300 million. At the same time the Company informs that the price level agreed upon between the parties reflects current and forecasted levels of market prices, which has been confirmed by a relevant Fairness Opinion issued by one of the leading consulting firms.

Entering into the PPA results from Polkomtel’s interest to secure long-term supplies of electric energy originating from renewable sources for own needs and for the purpose of resale to customers, in particular in the B2B segment, for whom the environmental aspect is becoming increasingly important. This step also supports the Company’s and its capital group’s ambitions at operate in a sustainable business model by increasing energy efficiency in day-to-day operations and consequently reducing its carbon footprint.

Legal basis

Article 17 Section 1 of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) 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.

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Last updated 03/12/2021