On 3 January 2018, the Extraordinary General Meeting of ElectroMobility Poland S.A. (a company in which ENEA holds 25% of shares) adopted a resolution on increasing the share capital of the company by PLN 20,000,000 up to the amount of PLN 30,000,000, by increasing the nominal value of existing shares from PLN 1,000 to PLN 3,000. The share capital increase was registered in the NCR on 23 April 2018. On 31 January 2018, the Extraordinary Shareholders Meeting of ENEA Innovation Sp. z o.o. adopted a resolution on increasing the share capital by the amount of PLN 3,500,000 (from PLN 305,000 to PLN 3,805,000) by creating 35,000 new shares of nominal value of PLN 100 each. The share capital increase was registered in the NCR on 23 April 2018. On 17 April 2018, the company name was changed in the NCR from ENEA Innovation Sp. z o.o. to ENEA Innowacje Sp. z o.o.

On 3 January 2018, an agreement was concluded for purchase of coal in 2018–2021 from Polska Grupa Górnicza Sp. z o.o. for the needs of power units of ENEA Elektrownia Połaniec S.A. The total net value of the agreement is PLN 1.49bn. In January 2018, an agreement was also concluded under which PGG will deliver PLN 0.52bn of coal supplies to ENEA Wytwarzanie by the end of 2021.

In January 2018, ENEA Operator completed a multi-stage extension of the Main Transformer Station which ensures power supplies for Customers in the Kostrzyn-Słubice Special Economic Zone. The investment is a response to dynamic economic development of the frontier zone, which translates into the need of connecting new entities to the grid and a power demand which has been growing for a couple of years.

On 31 January 2018, ENEA extended its offer by launching a new product intended to promote increased consumption of electricity in night-time hours. The new product – ENEA Eco – is to encourage the Customers to use electrical heating and electric cars thanks to attractive prices. ENEA Eco is targeted to retail customers who consume energy for the needs of households connected to ENEA Operator grid. The product supports energy consumption increase between 10 p.m. and 6 a.m. It is intended as a supplementation of preferential solutions included in the tariff for distribution services of ENEA Operator.

On 1 February 2018, the Extraordinary Shareholders Meeting of ENEA Wytwarzanie dismissed Dariusz Skiba, Economic and Financial Vice-President, as well as Stefan Pacyński, Development Strategy Vice-President, from the management board of the Company. On 16 February 2018, the Supervisory Board of ENEA Wytwarzanie adopted a decision on the appointment, as of 26 February, of Andrzej Wicik to act as Development Strategy Vice-President of ENEA Wytwarzanie, and Jarosław Ołowski to act as Economic and Financial Vice-President. The decision was preceded by a competition procedure and interviews. On 16 February 2018, Krzysztof Szlaga ceased to act as President of the Management Board of Lubelski Węgiel Bogdanka S.A. Until the appointment of his successor, duties of President of the Management Board shall be performed by Sławomir Karlikowski, Production Vice-President of the Management Board. On 19 March 2018, the Supervisory Board of LW Bogdanka adopted a resolution on appointing Artur Wasil to the position of President of the Management Board as of 21 March 2018. After the recruitment procedure, which ended on 27 March 2018, the Supervisory Board of ENEA Centrum adopted a resolution on the appointment, as of 28 March 2018, of Sławomir Jankiewicz to the position of president of the management board of ENEA Centrum and Krzysztof Kierzkowski to the position of IT and Development Management Board member of ENEA Centrum.

In March 2018, the construction project of a photovoltaic farm of 1 MW connection capacity in the locality of Jastrowie was positively evaluated and granted funding amounting to PLN 1,470,231.75. The total project value amounts to PLN 4,679,063.91.

Upon request of the Minister of Energy, as of 22 March 2018 Ireneusz Kulka was appointed to the Supervisory Board of ENEA S.A. By decision of the Minister of Energy, as of 15 April 2018, Ireneusz Kulka was dismissed from his position, and then, on 16 April 2018, appointed once again to the Supervisory Board of ENEA S.A. by the Extraordinary General Meeting. By decision of the Company's Extraordinary General Meeting, the Supervisory Board was also joined by Paweł Jabłoński, upon obtaining a positive opinion of the Board for Companies with State Treasury Shareholding and State Legal Persons. Moreover, the EGM dismissed Rafał Bargiel and Piotr Kossak from their positions.

On 27 March 2018, Elektrownia Ostrołęka Sp. z o.o., controlled by ENEA S.A. and Energa S.A., granted its consent for the settlement of the tender “Construction of Elektrownia Ostrołęka C with the capacity of approx. 1000 MW” by selecting as the best offer the one presented by the Consortium of GE Power Sp. z o.o. and Alstom Power System S.A.S, acting as General Contractor. The offer amounts to PLN 5,049,729,000 net, which is PLN 6,023,034,950 gross.

On 4 April 2018, Elektrownia Ostrołęka Sp. z o.o. resolved a public procurement award procedure entitled “Construction of Elektrownia Ostrołęka C with an approximate output of 1,000 MW” by selecting a Consortium composed of GE Power Sp. z o.o. and Alstom Power System S.A.S as the General Contractor. The settlement of the procedure was not tantamount to granting consent to conclude a contract with the General Contractor – in order to grant such a consent, a prior agreement of the ENEA’s Supervisory Board was necessary, among other things. The contract for the construction of Elektrownia Ostrołęka C with the consortium composed of GE companies (GE Power Sp. z o.o. and Alstom Power Systems SAS) was signed on 12 July 2018. Signing the agreement by the special purpose entity with the General Constructor is not tantamount to giving the consent for the notice to proceed.

On 20 April 2018, at the headquarters of the Ministry of Energy, ENEA Serwis, Kolejowe Zakłady Łączności, Grupa LOTOS, Poczta Polska and Telewizja Polska signed agreements on the joint actions towards the development of electromobility. The aim of the signed documents is to develop electromobility and to strengthen the cooperation between the companies in this scope. The companies will support each other in their efforts to increase the efficiency of their fleets of vehicles by introducing alternative fuel cars and creating the necessary infrastructure for them.

Moreover, on 25 June 2018, the National Centre for Research and Development and energy companies: ENEA, Energa-Operator, PGE Dystrybucja and Tauron Dystrybucja signed a Letter of Intent relating to multilateral cooperation for the development of electromobility in Poland. The objective of the “e-VAN” programme is the development of innovative, zero emissions commercial vehicle. The vehicle will be aligned with the needs of the signatories of the letter of intent, so that it can be used, among other things, in the companies' fleets for the performance of daily tasks.

From 7 to 27 May 2018, the warranty inspection of the new generation unit in Kozienice Power Plant, Unit No. 11 – the biggest and the most modern unit in this power plant – was being carried out. It is the largest, the most efficient and the most modern hard coal power unit in Poland. Unit No. 11 was put into operation on 19 December 2017.

On 10 May 2018, Krzysztof Figat left his office of the President of ENEA Wytwarzanie. As of 4 June 2018, after carrying out the qualification procedure, the Supervisory Board of ENEA Wytwarzanie company appointed Antoni Józwowicz as the CEO of ENEA Wytwarzanie. Antoni Józwowicz during his career held numerous management and executive positions, among other things, as the president of Polimex-Mostostal S.A., where he was responsible for the final stage of Unit No. 11 construction in ENEA Wytwarzanie.

On 11 May 2018, LW Bogdanka applied to the Minister of Environment for a concession to extract hard coal from the “K-6 and K-7” deposit in the region of Lublin. It borders directly with the “Puchaczów V” mining area, which is being currently exploited by Bogdanka. The operable resources covered by the Deposit Management Project in the period of validity of the concession requested by the company, which expires in 2046, are estimated at 66 million tonnes. Then, Bogdanka is planning to apply for the extension of this concession, which would ensure the increase of the level of resources by additional 60-70 million tonnes. The increase of resources by 66 million tonnes would result in the extension of the life of the mine approximately by nine years. The work on the first longwall of the K-6 and K-7 deposit may commence in 2022 – assuming that the concession will be granted this year.

ENEA developed a programme of cooperation between ENEA Group companies and vocational education schools and technical schools, which assumes providing the patronage for 14 vocational education schools and technical schools. These schools stand out as they provide their students with high quality education and skills development in the occupations which are in the highest demand in ENEA Group companies. The programme was launched on 17 May 2018 in Połaniec. ENEA and ENEA Elektrownia Połaniec signed the patronage agreement with Oddział Partyzancki AK “Jędrusie” School Complex in Połaniec.

ENEA Serwis will construct the photovoltaic power plant with the rated power of 420 kW together with electro-energetic connections. In June, the company won the tender issued by the investor – West Pomeranian Oncology Centre in Szczecin. The construction of the plant was completed in Q3 2018. The power plant consists of two parts: freestanding part with the electrical power of 404.24 kW and the part installed on the roof of the administrative building with the electrical power of 18.60 kW.

On 2 July 2018, the Management Board of ENEA S.A. received from the Management Board of Elektrownia Ostrołęka Sp. z o.o. a request for consent to conclude a public procurement agreement with the general contractor selected through the procedure for the award of a sectoral public procurement contract under the competitive dialogue entitled “Construction of Ostrołęka C Power Plant with a capacity of approx. 1,000 MW”. The Extraordinary Shareholders Meeting of Elektrownia Ostrołęka Sp. z o.o. expressed its consent to the conclusion of the aforementioned agreement on 6 July 2018, and 6 days later, i.e. on 12 July 2018, Elektrownia Ostrołęka Sp. z o.o. signed a public procurement agreement with the general contractor: Consortium of GE Power Sp. z o.o. - Leader of the Consortium and Alstom Power Systems S.A.S. Apart from ENEA S.A. and Energa S.A., the entity involved in financing the construction of the power plant will also be FIZAN Energia. On 4 September 2018, a memorandum of understanding was signed between Elektrownia Ostrołęka Sp. z o.o. and the aforementioned entities. The memorandum defines the preliminary structure of project financing. The next milestone in the process took place on 24 September 2018, when the Extraordinary General Meeting of ENEA S.A. granted a qualified consent to commence the Construction Stage within the Ostrołęka C Project. Earlier, on 3 September 2018, the same decision was announced by Energa S.A.

On 31 July 2018, Rafał Szymański handed in his resignation from the position of a member of the Supervisory Board of ENEA S.A. On 24 September 2018, Paweł Andrzej Koroblowski was appointed to the Supervisory Board of ENEA S.A.

On 21 August 2018, Andrzej Wicik submitted a statement of resignation from the position of Vice-President of the Management Board for Development Strategy of ENEA Wytwarzanie Sp. z o.o. effective as of 31 August 2018. At a meeting on 4 September 2018, the Supervisory Board of ENEA Wytwarzanie decided to appoint, as of 10 September 2018, Tomasz Siwak to the position of Vice-President of the Management Board for Development Strategy of ENEA Wytwarzanie. On 10 August 2018, the Supervisory Board of ENEA Centrum dismissed from the Company’s Management Board Ewa Troszczyńska - Member of the Management Board for Financial Affairs, Łukasz Pawłowski - Member of the Management Board for Customer Service and Krzysztof Kierzkowski - Member of the Management Board for IT and Development. On 12 September 2018, the Supervisory Board of ENEA Centrum decided to appoint, as of 13 September 2018, Dariusz Szymczak as Member of the Management Board for Customer Service and Józef Aleszczyk as Member of the Management Board for Operational Affairs. On 19 September 2018, the Supervisory Board of LW Bogdanka S.A. dismissed Stanisław Misterka from the position of Vice-President for Economic and Financial Affairs and Sławomir Karlikowski from the position of Vice-President for Production and Development.

In July, the 110 kV high voltage line between Leszno Gronowo and Śrem in Greater Poland was commissioned and the Main Power Supply Point Zdroje in Western Pomerania was comprehensively revamped. The section of the line from Leszno to Śrem is the last stage of redevelopment of over 110 km of the line from Leszno to Września. Both investments were carried out by ENEA Operator.

Poland was promoted from Emerging Markets to the prestigious Developed Markets status by FTSE Russell. On 24 September, next to GPW S.A., 36 other Polish companies also debuted in the Global Developed category of the FTSE Global Equity Index Series, among them ENEA S.A. and LW Bogdanka S.A., which were included in the Small Companies category. Poland’s quotations in the FTSE Global Developed Index started from Rank 23 among 25 developed capital markets.

On 1 October, Fitch Ratings affirmed ENEA S.A.’s long-term local- and foreign-currency Issuer Default Ratings at ‘BBB' with stable outlooks. The affirmation reflects the Company's changed business profile with a higher contribution to EBITDA from riskier – according to Fitch – segments, i.e. electricity generation and coal mining. Still, the more predictable distribution of electricity remains an important part of the Company’s operations.

On 19 December 2018, one year passed since Unit No. 11 with a capacity of 1,075 MW - the most modern and efficient production unit in the Polish power industry – had been commissioned at ENEA Wytwarzanie.

On 30 November 2018, Elektrociepłownia Białystok, which thus far had been a part of ENEA Wytwarzanie, was incorporated into ENEA Ciepło. This is the next stage of the previously announced changes in ENEA Group, which will allow for optimisation of heat production in Białystok, the capital of Podlasie, under one recognisable brand.

The Warsaw Stock Exchange once again selected the participants of the prestigious RESPECT Index rating. Lubelski Węgiel Bogdanka was qualified to this group for the tenth time. The publication of the index in the new composition began on 27 December 2018.

In 2018, a solution supporting Poland's energy security, i.e. the capacity market mechanism, was launched in Poland. In Q4 2018, three capacity market auctions with the participation of ENEA Group took place. As a result, for the years 2021, 2022 and 2023 a total of 3,663 MW of capacity obligation was contracted for our generation units, including Unit No. 11 in Kozienice Power Plant. The estimated potential revenues from the capacity market under multiannual contracts concluded only during the first auction will reach PLN 6.6 billion over 15 years.

On 28 December 2018, the Management Board of Elektrownia Ostrołęka C Sp. z o.o. issued an order to the general contractor to commence works on the construction of Ostrołęka C Power Plant. Earlier, a memorandum of understanding was signed, which defined new rules of cooperation between the investment partners, including ENEA’s financial involvement in the Construction Stage for the amount of PLN 1 billion.

On 4 October 2018, the Supervisory Board of LW Bogdanka S.A. appointed Artur Wasilewski to the Management Board as Vice-President for Economic and Financial Affairs from 8 October 2018 and Dariusz Dumkiewicz as Vice President for Development from 15 October 2019.