Ørsted and Polska Grupa Energetyczna (PGE) have reached a final investment decision (FID) on the 1.5GW Baltica 2 offshore wind farm in Poland.
To be located approximately 40km off the Polish coast near Ustka, the Baltica 2 project will be developed, owned, and operated as a 50-50 partnership between the two companies.
Ørsted and PGE will oversee all aspects of the wind farm, including offshore transmission infrastructure and substations.
Full commissioning of the Polish offshore wind facility is expected by the end of 2027.
Ørsted deputy CEO and chief commercial officer Rasmus Errboe said: “With today’s announcement, we’re ready to build Baltica 2, a flagship project for offshore wind in Poland.
“We’re satisfied with the value creation of the project, which has an attractive risk-reward profile. I wish to thank the Polish government for its support, and I want to thank our partner PGE for working with us to reach this moment.”
The Baltica 2 offshore wind farm has secured a 25-year, inflation-protected contract for difference (CfD) with the Polish state. It has also secured all necessary permits.
In addition, the offshore wind project has a grid connection agreement in place with Poland’s transmission system operator PSE.
All major component and vessel contracts for the Baltica 2 project have been finalised, securing most of its capital expenditure and reducing financial risks.
The wind farm will feature 107 SG 14-222 DD turbines manufactured by Siemens Gamesa, with their installation to be managed by Cadeler and Fred. Olsen Windcarrier. Van Oord will handle foundation and offshore substation installations.
The Baltica 2 offshore wind facility will utilise the Port of Gdansk for storage, pre-assembly, and offshore installation of wind turbine components.
After commissioning of the facility, the CfD will be based on the agreed-upon 2021 price of €71.82 per MWh, adjusted for inflation. Once the CfD expires, the wind farm will operate under market conditions or secure new power purchase agreements.
PGE CEO Dariusz Marzec said: “The Baltica 2 offshore wind farm, the largest renewable energy project currently under development in the Baltic Sea, will diversify Poland’s energy production, enhance energy security, and provide cleaner and more affordable energy.”
In October 2023, PGE and Ørsted awarded a contract to Germany-based Steelwind Nordenham for the supply of foundations for the Polish wind farm.
