Polish project secures Contract for Difference

Poland’s Energy Regulatory Office has approved a Contract for Difference (CFD) of the Baltic Power offshore wind farm being developed by PKN ORLEN and Northland Power.

The CfD was priced 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 parties are jointly developing the wind farm with a total capacity of up to 1.2 GW. Construction is expected to commence in 2023 with commercial operations expected in 2026.

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.


Back in April,
RWE secured a CfD for its 350 MW FEW Baltic II whilst Ørsted and PGE secured CfDs for the Baltica 3 and Baltica 2 offshore wind farms with a total capacity of up to 2.5 GW. This was followed by news that Equinor and Polenergia's Bałtyk II and Bałtyk III projects were awarded CfDs in May.



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