FLZN, SPANISH UTES, GLOBAL LNG, RWE/PPC, ENGI, RWE: EU Energy Sector Specialist Commentary Oil - Gas - Utilities - Infrastructure

Research evidence excerpt

FLZN, SPANISH UTES, GLOBAL LNG, RWE/PPC, ENGI, RWE: EU Energy Sector Specialist Commentary Oil - Gas - Utilities - Infrastructure

ration Tax to 5% in 2026, 3.5%

in 2027 and then 0% from 2028

J .P. Morgan View

- As a reminder, the tax was suspended in March as part of measures to help offset increases in bills as a result of the US war

against Iran. These measures are now withdrawn, meaning the tax was only actually suspended for 3.5 months vs JPMe for it to

be out for the rest of 2026 and return at 7% in 2027

- This means that yday’s announcement is actually a small negative vs our numbers for 2026 but a small positive from 2027

onwards. In any case, though, we remind that eliminating the tax is only a temporary positive for the companies given it is a pass

through, so the integrateds only benefit in the period they are hedged. We therefore see the announcement as minor for valuation

for the likes of IBE and ELE

RWE/PPC - bring nearly 1GW of new solar capacity online in Northern Greece

- RWE and PPC announced yesterday they are driving forward Greece’s energy transition with nearly 1GW of new solar capacity

now in operation.

- The last of 9 solar farms in Western Macedonia in Northern Greece has recently been commissioned. These solar projects are

grouped into 3 large-scale photovoltaic clusters and have a total capacity of 930 MWp (884 MWac).

- Within the boundaries of the former Amynteo open-cast lignite mine, joint venture Meton Energy, RWE (51% share) and PPC

(49% share) has developed, constructed and commissioned these nine solar farms. In addition to operating the three Amynteo

photovoltaic clusters, the partners are currently constructing two new solar projects in the administrative region of Central

Macedonia in Northern Greece.