PRESS RELEASE: Effect of regulatory changes on Photon Energy’s power plant portfolio from 2022

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DGAP-News: Photon Energy NV / Keyword (s): Various effect of regulatory changes on Photon Energy’s power plant portfolio from 2022 09-29-21 / 18:07 The issuer is solely responsible of the content of this ad.

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Effect of regulatory changes on Photon Energy’s power plant portfolio from 2022

Amsterdam – September 29, 2021 – Photon Energy NV (WSE & PSE: PEN, FSX: A1T9KW) (“Photon Energy Group”, the “Group” or the “Company”) announces that the regulatory changes recently adopted in the Czech Republic and Slovakia will have a impact on the Group’s portfolio of photovoltaic power plants in both countries from January 1, 2022.

Czech Republic

The Czech government has a long tradition of introducing retroactive regulatory changes for photovoltaic power plants commissioned during the solar boom between 2008 and 2010. At the end of 2010, the Czech government introduced a 26% levy on feed-in tariffs received by photovoltaic power plants put into service. in 2009 and 2010 for a period of three years, i.e. 2011-2013. Since 2014, a solar tax of 10% on the feed-in tariffs collected by photovoltaic power plants commissioned in 2010 has been applied.

In September 2021, the Lower House of Parliament of the Czech Republic adopted a new law on support for renewable energy sources (RES) that will empower future governments to set maximum internal rates of return (IRR) for different RES. supported, between 8.4% and 10.6% for the respective support periods. For photovoltaic power plants commissioned during the years 2009 and 2010, an additional solar tax of 10% has been approved. Thus, the 2009 plants will pay 10% and the 2010 plants will pay a total of 20% (increased from the previously applied rate of 10%). Pending the final signature of the Czech President, the new law will enter into force on January 1, 2022.

Slovakia

The Slovak Parliament approved an amendment to the Energy Law introducing an extension of feed-in tariffs for photovoltaic plants commissioned in 2009 to 2011 from 15 years to 20 years. This is accompanied by a reduction in the applicable feed-in tariffs, which are assessed for each individual PV plant, taking into account the additional investment costs and the higher operating and maintenance costs linked to the lifetime. extended technique. The new feed-in tariffs are set with the objective of being neutral in relation to the current value of the assets. The Company expects the adjusted feed-in tariffs for its PV plants in Slovakia to be on time.

Operational impact

The consolidated revenues of the Czech photovoltaic portfolio will not be impacted by the increase in the solar tax while (at constant production) the EBITDA would be lower by up to 1 million euros in 2022. The feed-in tariffs received by the power plants The Group’s Czech photovoltaic systems are subject to a minimum annual indexation of 2%, so that the impact will be gradually reduced over the following years. In addition, the Company intends to switch the power plants in the Czech portfolio to the alternative green bonus scheme for 2022. Based on current electricity prices in the market, this is expected to offset a significant portion of the impact of the increase in the solar tax by the sale of electricity. at market prices. For the Slovak photovoltaic portfolio, the adjusted feed-in tariffs could lead to a decrease in consolidated revenues and EBITDA of up to € 1 million in 2022. The repayment schedule for the financing of the Czech portfolio will not be affected, for the portfolio Slovak. a potential increase and extension of the debt financing repayment schedule is possible due to the extension of the feed-in tariff by five years.

Impact of the evaluation

The Company expects a negative impact on the valuation of Czech and Slovak photovoltaic plants according to IAS 16 up to 4.0 million euros, which will result in a similar impact on consolidated equity in 2021. The Company is still expects the equity ratio to stay within the target range of 25% to 30%.

In this context, the Company would like to point out that the valuation of its Czech and Slovak photovoltaic portfolios (according to IAS 16) is based only on the free cash flow generated during the feed-in tariff periods (now 20 years for both countries) , and land owned is recorded at cost. As such, a zero value has been attached to the free cash flow generated after the feed-in tariff period of the existing installations for the remaining life of the plants. The possibility of replenishing the installations with new technology after the feed-in tariff periods for the production and sale of electricity on the energy market has also not been taken into account. Based on the current land market prices, the Company is convinced that the material value is hidden in the land reserve occupied by said photovoltaic power plants. About Photon Energy Group – photonenergy.com

Photon Energy Group provides solar energy and clean water solutions around the world. Its solar energy services are provided by Photon Energy; Since its founding in 2008, Photon Energy has built and commissioned solar power plants with a combined capacity of over 110 MWp and has plants with a combined capacity of over 89 MWp in its proprietary portfolio. It is currently developing projects with a combined capacity of over 590 MWp in Australia, Hungary, Poland and Romania and provides operation and maintenance services for over 300 MWp worldwide. The group’s second major line of business, Photon Water, provides drinking water solutions including treatment and remediation services, as well as the development and management of wells and other water resources. Photon Energy NV, the holding company of Photon Energy Group, is listed on the Warsaw, Prague and Frankfurt stock exchanges (Quotation Board). The company is headquartered in Amsterdam, with offices in Australia and across Europe.

Contact Investor Relations

Emeline Parry Head of Investor Relations and Sustainable Development Tel. +420 702 206 574 Email: ir@photonenergy.com

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2021-09-29 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this advertisement. DGAP’s distribution services include regulatory announcements, financial / corporate news, and press releases. Archives on www.dgap.de

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1236927 2021-09-29

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(END) Dow Jones Newswires

September 29, 2021 12:07 p.m. ET (4:07 p.m. GMT)


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