The European Investment Bank (EIB) has approved the in-principle financing of PGE and Orsted’s Baltica offshore wind farm project in Poland.
The total financing package amounts to €1.4bn.
The approval marks a significant step towards ensuring an optimal financing structure that will enable the construction of PGE’s first offshore wind farms in the Baltic Sea.
The project with a total capacity of 2.5GW consists of two stages – Baltica 2 with a capacity of 1.5 GW, which is scheduled to be commissioned in 2027, and 1GW Baltica 3 is scheduled to be operational by the end of this decade.
For Baltica 2 and Baltica 3 there is one tranche to be disbursed in the project finance formula in the amount of up to €350m, and one tranche to be disbursed based on guarantees from financial institutions, banks or export credit agencies.
Wojciech Dąbrowski, president of the management board of PGE Polska Grupa Energetyczna, said: “Obtaining a preliminary credit decision from the European Investment Bank is a significant step for financing the construction of the largest offshore wind farm in the Baltic Sea.
“The presence of a recognized and experienced international financial institution in financing the project is a signal that we are a reliable partner for financial institutions, the projects we run meet the highest standards, and the interest of the financial sector in cooperation with PGE in the field of offshore wind energy is really high.”
Vice-president of the EIB Teresa Czerwińska added: “Diversification of energy sources and independence from fossil fuels are key tasks for Poland and the European Union, and Baltica Offshore Wind Farm is a very important project implementing these goals.
“Supporting energy transition is a priority for the EIB as it accelerates green economic development and supports labor market.”