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PGE, Tauron and Enea joins forces for Polish projects

By: Tom Russell 19/11/2021 PGE

General Windfarms

PGE Polska Grupa Energetyczna has signed conditional agreements with Tauron Polska Energia and Enea for the sale of shares in four project companies whose task will be to obtain location permits for the construction of offshore farms in the Polish Exclusive Economic Zone in the Baltic Sea. It follows the signed of a letter of intent in January to cooperate on future offshore wind farm projects.

The agreements signed are conditional agreements. They are subject to approval from Poland's Office of Competition and Consumer Protection's consent. The application to the President of the OCCP for the agreement with PGE and Enea was filed on 5 July 2021. it was followed by an application to the President of the OCCP for PGE's cooperation with Tauron Polska Energia on 28 October 2021. Currently, both applications are being processed by the Office.

"The intention of the letter signed in January 2021 with Tauron and Enea was to strengthen cooperation between the energy companies in the area of offshore wind energy. Today, this intention is becoming a fact - together we will apply for the relevant permits and in subsequent steps develop four projects in the Baltic Sea - three together with Enea and one in cooperation with Tauron. Acquiring new locations in the Baltic Sea and joint development of offshore wind energy will accelerate the pace of Poland's energy transition" said Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna.

"The development of offshore wind power is key to achieving our goals of transforming TAURON's generation mix. We realize that without wind farms in the Baltic Sea, the replacement of coal sources will be virtually impossible" said Artur Michałowski, acting President of the Board of Tauron Polska Energia. "Due to its excellent conditions for wind energy development, the Baltic Sea has become a place of competition for the world's largest energy companies. The joint actions of Polish concerns improve our starting position in this battle and allow us to look at its outcome with optimism" Michałowski adds.

"Enea Group is firmly committed to the energy of the future, including offshore wind farms. Joint action and the joining of forces by the largest Polish energy groups in the development of offshore wind is the right direction. With the agreement signed, we are increasing our chances of investing in today's most efficient sources of renewable energy. The Baltic Sea offers us great opportunities for wind energy development. By cooperating we can better exploit this potential, thanks to which Poland has a chance to become a leader in the development of offshore projects in the Baltic Sea" commented Paweł Szczeszek, President of the Board of Enea.

Poland is progressing the development of offshore wind under the its 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. Under the Act up, to 5.9 GW of offshore has already been allocated CfDs.

A 2.5 GW CfD auction is now expected 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. As offshore wind is taking shape in Poland, more industry players are taking an interest.

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

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PGE, Tauron and Enea joins forces for Polish projects

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