GE Renewable Energy and PKN ORLEN form alliance

GE Renewable Energy and PKN ORLEN have signed a Memorandum of Understanding to explore ways to work together to support the development of offshore wind projects in Poland.

GE has a long history in Poland with over 5,000 employees working in Aviation, Healthcare, Power and GE Renewable Energy. The company has an Engineering Design Centre with over 1,200 engineers and experience in executing large power projects. GE Renewable Energy is already an active player in the Polish wind market with over 300 onshore wind turbines delivering 900 MW, with almost half of that coming online since 2018. LM Wind Power, a GE Renewable Energy business, also employs around 1,000 employees at its Goleniow onshore wind turbine blade manufacturing site.

Jérôme Pécresse, Senior Vice President, GE & CEO, GE Renewable Energy, said: “Poland is well positioned to use offshore wind resources to help accelerate the energy transition. The agreement that we are signing today charts a path to take pragmatic steps that can take full advantage of Poland substantial offshore wind resources to create win-win outcomes in terms of the environment and economic development.”

PKN ORLEN plans to invest up to 47bn PLN in renewable energy sources, including offshore wind, leading up to 2030. Earlier this year, it secured a Contract for Difference (CFD) of the 1.2 GW
Baltic Power offshore wind farm which is it developing in conjunction with Northland Power.It plans to acquire additional sites in future concession procedures.

Daniel Obajtek, President of the Management Board of PKN ORLEN said “We are the leader of the energy transformation in Central Europe. We are implementing a strategy that assumes an increase in capacity from renewable energy sources to over 2.5 GW at the end of this decade. We want to achieve this level mainly by investing in offshore wind energy and, at the same time, expanding the RES portfolio with additional capacity in onshore wind farms. The agreement we signed with GE Renewable Energy supports the implementation of these ambitious goals. The experience gained thanks to this cooperation and the joint involvement in the development of the Polish offshore wind energy sector will make a significant part of the developing offshore market a share of Polish capital in the upcoming concession procedure.”

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 by the end of 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. A number of projects have already secured CfDs and are progressing with development.