Danish Orsted & PGE get green light for giant Offshore wind

The Polish Energy Regulatory Office has awarded a Contract for Difference to the Baltica 3 and Baltica 2 offshore wind farms with a total capacity of up to 2.5 GW, Danish offshore wind developer Ørsted said.

With a total capacity of up to 2.5 GW, Baltica 3 and 2 will generate enough green electricity to power 4 million Polish households.

In February 2021, Ørsted and PGE signed an agreement to form a 50/50 joint venture for the development, construction, and operation of Baltica 3 and 2, developed through special purpose vehicles. 

Subject to the closing of the joint venture transaction and Ørsted’s and PGE’s final investment decisions, the Baltica 3-phase of the project (up to 1 GW) would start generating power around 2026, while the Baltica 2-phase (up to 1.5 GW) could become operational before 2030. The CfD award is subject to final approval from the European Commission.

Rasmus Errboe, Senior Vice President and Head of Region Continental Europe at Ørsted, said the offshore wind industry would be “a cornerstone in Poland’s transition to green power and has the potential to create thousands of Polish jobs.”

Wojciech Dąbrowski, CEO of PGE Capital Group, said: “Offshore wind in Poland now has a solid foundation to be developed and it is currently the PGE Capital Group’s priority.”

He also said his company was committed to strengthening the local supply chain.

Poland, which has no operational offshore wind farms plans to install 5.9 GW by 2030, up to 11 GW by 2040, and, according to Ørsted’s statement on Wednesday, analyses suggest a potential of up to 28 GW in Polish waters by 2050. 

“This will make Poland the biggest market for offshore wind in the Baltic region and contribute significantly to the European Commission’s target of 300 GW offshore wind capacity in European waters by 2050 to meet the EU’s climate neutrality goal,” Ørsted said.

The Polish Wind Energy Association estimates that the realization of the offshore wind capacity targets in the Polish Offshore Wind Act will unlock EUR 29 billion investments.

Poland

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