COPENHAGEN - Ørsted A/S and Polish energy company PGE Polska (WA:PGE) Grupa Energetyczna have taken a final investment decision on the Baltica 2 Offshore Wind Farm, set to become Poland's largest renewable energy project. The 1.5 GW wind farm, located approximately 40 km off the Polish coast near Ustka, is slated for full commissioning by the end of 2027.
The 50/50 partnership between the two companies will oversee the entire scope of the project, including the construction, ownership, and operation of the wind farm, which will leverage the Port of Gdansk for the storage and pre-assembly of wind turbine components. The farm will feature 107 Siemens (ETR:SIEGn) Gamesa 14 MW-222 wind turbines, installed by Cadeler and Fred. Olsen Windcarrier, with Van Oord handling the foundation and offshore substation installations.
Rasmus Errboe, Deputy CEO and CCO at Ørsted, emphasized the project's significance for the offshore wind industry in Poland and the company's satisfaction with the project's risk-reward profile. Dariusz Marzec, CEO of PGE, highlighted the wind farm's role in diversifying Poland's energy production and enhancing energy security, providing cleaner and more affordable energy.
The Baltica 2 project has secured a 25-year inflation-protected contract for difference (CfD) with the Polish state, with a nominal starting price per MWh based on the 2021 price of EUR 71.82 plus accumulated inflation. After the CfD period, the wind farm will receive market price for electricity or enter new power purchase agreements.
This investment is a significant step in Poland's energy transition, aiming to comply with the country's energy policy until 2040, which identifies offshore wind as a key technology in becoming a low-emission economy. Poland's Offshore Wind Act commits to installing 5.9 GW of offshore wind by 2030 and 11 GW by 2040.
The project is expected to generate enough green electricity to meet the needs of approximately 2.5 million Polish households, contributing to the country's transition to green energy and economic development. All major component and vessel contracts for Baltica 2 have been signed, securing the majority of the project's CAPEX and significantly de-risking the project.
This news is based on a press release statement from Ørsted A/S.
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