Equinor and Polenergia score CfDs for Polish projects

By: Tom Russell 05/05/2021 Equinor

General Windfarms

Poland’s Energy Regulatory Office (ERO) announced Equinor and Polenergia’s Bałtyk II and Bałtyk III projects were awarded contracts for difference (CfD) under the first phase of Poland’s offshore wind development scheme. The projects are among the first to secure offshore wind awards in Poland.

The CfDs are awarded at PLN 319.60 per MWh for up to 25 years, subject to some adjustments and final approval from Polish authorities and the European Commission.

“The CfD awards to the Bałtyk II and Bałtyk III projects represent a breakthrough for Equinor in Poland and supports the country’s ambitions to transform its energy mix. Full-scale development of the two projects will constitute an offshore wind hub in the Baltic Sea. It will create industrial activity and jobs to support the Polish economy, and supply low-cost renewable electricity to Polish homes and businesses. The CfD award confirms our focused strategy of creating value from early access at scale in attractive markets,” said Pål Eitrheim, Equinor’s executive vice president for New Energy Solutions.

With a combined capacity of 1440 MW, Bałtyk II and Bałtyk III are expected to generate enough renewable offshore wind energy to power two million Polish homes. Pending all necessary agreements and permits, and subject to the final investment decision from Equinor and Polenergia, construction work could commence as early as 2024.

“The award of CfDs to the Bałtyk II and III projects is an important milestone towards Equinor’s ambitions in Poland and the Baltic region. Alongside our partner Polenergia, we look forward to further developing these projects to create value, also in the local community. The Baltic Sea will be a significant resource for offshore wind energy, and we are only in the early stages of realizing its full potential," commented Ingunn Svegården, Equinor’s vice president for Emerging Regions in New Energy Solutions.

Equinor was among the first international developers to enter the Polish offshore wind market in 2018 through the acquisition of a 50 percent interest in the Bałtyk II and Bałtyk III projects from Polenergia. Equinor subsequently acquired from Polenergia a 50 percent interest in the early-phase Bałtyk I offshore wind project. Equinor will operate the projects through the development, construction, and operations phases.

Poland is progressing the development of offshore wind under the Offshore Act, which regulates the method of obtaining public support by investors interested in building offshore wind farms in the Polish exclusive economic zone of the Baltic Sea. The Act provides up to 5.9 GW allocated by CfD in 2021 and a 2.5 GW CfD auction in 2025 and 2027. Projects will have a 7-year award-to-generation deadline, meaning 10.9 GW generating power by 2034. The government plans to launch further support phases in 2025 and 2027, both 2.5 GW, leading to 11 GW by 2040.

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