Ørsted, PGE take final investment decision on Baltica 2 offshore windfarm

The offshore windfarm will be built, owned and operated in a 50/50 partnership between Ørsted and PGE, Poland’s largest energy company.

Ørsted deputy chief executive and chief commercial officer Rasmus Errboe said, “We are ready to build Baltica 2, a flagship project for offshore wind in Poland. We are satisfied with the value creation of the project, which has an attractive risk-reward profile. Together, we’re writing a new chapter in the Polish energy sector, and we’re setting up an industry that will bring jobs and industrial development to Poland for decades to come.”

PGE chief executive Dariusz Marzec said, “The Baltica 2 offshore windfarm, the largest renewable energy project currently under development in the Baltic, will diversify Poland’s energy production, enhance energy security, and provide cleaner and more affordable energy compared to fossil fuel sources. This investment represents a significant step in Poland’s energy transition and serves as a major boost to economic development, attracting new investments to the entire Polish economy and helping to create new jobs.”

Baltica 2, which will be located approximately 40 km off the Polish coast near Ustka, is expected to be fully commissioned in 2027. The project has a 25-year inflation-protected contract for difference (CfD) with the Polish state, has obtained all permits and has signed a grid connection contract with the Polish transmission system operator PSE. All major component and vessel contracts for Baltica 2 have been signed, locking in the majority of the project’s CAPEX, which significantly derisks the project.

Baltica 2 will use the Port of Gdansk for the storage, pre-assembly, and offshore installation of wind turbine components. The windfarm will comprise 107 Siemens Gamesa 14 MW-222 wind turbines, which will be installed by Cadeler and Fred Olsen Windcarrier. Van Oord will be installing foundations and offshore substations.

The CfD for Baltica 2 runs for 25 years and starts after commissioning. The nominal starting price per MWh will be determined based on the agreed 2021 price of €71.82 plus accumulated inflation from 2021 until the CfD starts. The price per MWh will be annually adjusted to inflation. After the CfD ends, Baltica 2 will receive the market price for electricity or enter new power purchase agreements.