Ørsted and PGE score CfD in Poland

By: Tom Russell

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08/04/2021 Ørsted
The Polish Energy Regulatory Office has awarded a Contract for Difference (CfD) to Ørsted and PGE's Baltica 3 and Baltica 2 offshore wind farms, with a total capacity of up to 2.5 GW.

The Baltica Offshore Wind Farm – the largest offshore wind project in the Polish part of the Baltic Sea ,comprising
Baltica 3 and Baltica 2 – secured a CfD at a maximum of PLN 319.60/MWh in accordance with the Decree of the Minister of Climate and Environment of Poland and the Offshore Wind Act.

With a total capacity of up to 2.5 GW, Baltica 3 and 2 is expected to 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 investments 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 contract award for Baltica 3 and 2 is a big milestone for Polish offshore wind and for Ørsted’s and PGE’s joint ambitions in Poland. Subject to closing of the joint venture agreement, we look very much forward to delivering these important infrastructure projects and to help Poland harness the large green energy resources in the Baltic Sea. The offshore wind industry will 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: ”The decision of the President of the Energy Regulatory Office brings the Offshore Programme and the Baltica offshore wind farm closer to realization. Offshore wind in Poland now has a solid foundation to be developed and it is currently the PGE Capital Group's priority. In our application for the CfD we also presented how we intend to carry out our investments in offshore wind farms as the leader of this new industry in Poland. We are committed to strengthen the local supply chain.”

For more information on offshore wind farms worldwide, click here.

About the Author

4C Offshore | Tom Russell