CGNI Financial and ESG Update

6 Characteristics of the Czech Republic's energy system and constraints of alternative technologies likely leading to gaseous fuels playing a significant role across all decarbonization scenarios While various technologies are expected to be required for decarbonization, gaseous fuels (clean hydrogen, biomethane or residual gas) in large part delivered via GasNet's DSO network are expected to play a significant role to decarbonize the Czech Republic due to: Higher suitability of gaseous fuels to cover winter peak heating demand compared to electric power, which requires real time matching of demand and supply and hence very high installed capacities of backup generation / power storage with otherwise low utilization New nuclear reactors (tender for part of the capacity currently ongoing) or small modular reactors not expected to deliver new nuclear capacity before 2036 also, after 2036 nuclear will only have limited ability to cover demand spikes (e.g., heating demand peaks on cold winter days) The country's comparatively unfavorable conditions for renewables with no offshore wind and relatively low onshore wind and solar capacity factors of 0.2 and 0.18, respectively 6 gasnet.cz 34

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