Poland – The Polish Energy Regulatory Office has awarded a Contract for Difference to the Baltica 3 and Baltica 2 offshore wind farms with a total capacity of up to 2.5 GW.
Baltica 3 and 2 will contribute to Poland’s green energy transition, accelerate the development of the local supply chain and spur economic activity for many years to come.
Baltica offshore wind farm – a step closer
The Baltica Offshore Wind Farm is the largest offshore wind project in the Polish part of the Baltic Sea, comprising the two phases Baltica 3 and Baltica 2. The project today came a big step closer to realization when the President of the Polish Energy Regulatory Office (ERO) awarded the project a Contract for Difference (CfD) at a maximum of PLN 319.60/MWh in accordance with the Decree of the Minister of Climate and Environment of Poland and the Offshore Wind Act. This effectively confirms that the Baltica Offshore Wind Farm has been selected for the first phase of Poland’s ambitious offshore wind buildout program.
Project to power 4 million households
With a total capacity of up to 2.5 GW, Baltica 3 and 2 will generate enough green electricity to power 4 million Polish households.
In February 2021, Ørsted and PGE signed an agreement to form a 50/50 joint venture for the development, construction and operation of Baltica 3 and 2, developed through special purpose vehicles. Subject to the closing of the joint venture transaction and Ørsted’s and PGE’s final investments decisions, the Baltica 3-phase of the project (up to 1 GW) would start generating power around 2026, while the Baltica 2-phase (up to 1.5 GW) could become operational before 2030. The CfD award is subject to final approval from the European Commission.
Poland’s offshore wind roadmap
Poland’s energy policy until 2040 singles out offshore wind as a key technology to make Poland a low-emission economy. From zero offshore wind capacity today, Poland commits to install 5.9 GW by 2030, up to 11 GW by 2040, and analyses suggest a potential of up to 28 GW in Polish waters by 2050. This will make Poland the biggest market for offshore wind in the Baltic region.
The Polish Wind Energy Association estimates that the realization of the offshore wind capacity targets in the Polish Offshore Wind Act will unlock EUR 29 billion investments. Several Polish companies are already active in the offshore wind industry as suppliers of cables, foundations, cranes and vessels for installation and service of offshore wind turbines. And Polish ports in the Baltic Sea region have the potential to become hubs for installation, service and maintenance of offshore wind farms.
