Report cites multiple benefits from closer energy ties in the Baltic

The report, Baltic Cooperation: Momentum for Energy Transition, suggests greater co-operation between Poland and other states in the Baltic ‘could unlock cheaper and more sustainable energy.’

Co-operation would also have other benefits, the report finds, including energy independence and security, and the opportunity for joint projects to develop new technology, such as green hydrogen. 

The report assesses the progress of the energy transition in the region and identifies opportunities for collaboration to accelerate decarbonisation. It outlines areas of co-operation and their expected outcomes, following an indepth analysis taking in eight countries: Poland, Germany, Denmark, Sweden, Finland, Lithuania, Latvia and Estonia.

The report says the combined potential for renewable energy generation in the region – including offshore and onshore wind, solar, and hydropower – is immense, and is estimated at 4,400 TWh, 4.5 times the Baltic countries’ energy output in 2023. Yet, the region still faces the classic energy trilemma: how to balance security, sustainability and affordability.

Orlen chief executive Ireneusz Fąfara said, “We are actively shaping the future of the energy sector in the Baltic, which is critical to Poland’s energy security and economic future, as well as to the broader European energy landscape. 

“By 2035, we plan to invest up to PLN380Bn  (US$98Bn) in renewable energy projects, including offshore wind… and new technology, particularly energy storage solutions. 

“By working together with regional partners, we can fully harness the region’s potential and deliver more secure, affordable, cleaner energy for Poland and our neighbours.”

In a foreword to the report, S&P Global senior vice president geopolitics and international affairs Carlos Pasqual said, “Few parts of the world are better positioned than the Baltic Sea nations. All are members of the EU and NATO. All share legal foundations to collaborate on national security, energy and sustainability. All have committed to the EU’s goals on decarbonisation. Simply attaining North Sea levels of integration could triple regional power interconnections, raise offshore wind generation by six-fold, and develop competitive carbon storage projects.”

The report says the total offshore wind potential in the Baltic Sea is 93 GW, but notes only about 3 GW is currently operational, compared with 32 GW in the North Sea. It states that, without enhanced collaboration on maritime spatial planning and harmonised permitting processes, achieving the Marienborg Declaration’s target of 19.6 GW of installed offshore wind capacity in the Baltic by 2030 may prove unattainable.

Enhanced collaboration on spatial planning can bridge the 16-GW gap to the goal of the Marienborg declaration, the report concludes, also highlighting the key role the development of interconnectors will play in the Baltic energy market.