Necessary capital expenditures and their financing

Capital expenditures related to the strategy implementation in the years 2023-2042 in all areas of activity of the ENEA Group are estimated at more than PLN 68 billion.

¹⁾ _{In the structure of capital expenditures for renewable sources, about 0.03% will be designated for hydro power plants; due to rounding error, the capital expenditures for individual technologies may not add up to 100%}

It will be possible to finance the planned investments with both Group’s own funds and with capital raised by the Group companies from external sources, while preserving the safe value of the net debt/EBITDA ratio. In 2022, ENEA successfully completed a recapitalization process, having raised over PLN 750 million to finance the Group’s capital expenditure program. The issue of shares will enable the ENEA Group to pursue one of the key directions of the Development Strategy. The newly obtained funds will be spent on investments in the area of distribution, including on the development of RES capacities and smart power grids.

The development strategy assumes that about 50% of the RES investments will be financed using the joint venture structures and 50% on ENEA Group’s balance sheet (other than offshore projects, which will be implemented entirely in the joint venture formula).

Pursuant to the European Commission’s Climate, Energy and Environmental State aid guidelines, public support of natural gas fired generation units with EU and national funds was possible only in the short term and moreover with a considerable limitation of the scope of costs eligible for financing.

On 2 February 2022, the European Commission approved a proposal for a delegated act to include certain nuclear and gas power activities in the list of economic activities recognized by the European Union as environmentally sustainable, which is critical in terms of the possibility of obtaining financing for such projects.