Poland’s Energy Regulatory Office (ERO) has awarded Equinor and Polenergia’s Baltyk 2 and 3 projects Contracts for Difference (CfD) under the first phase of Poland’s offshore wind development scheme.
The projects have a combined potential capacity of 1440MW.
Equinor’s executive vice president for new energy solutions Pal Eitrheim said: “The CfD awards to the Baltyk 2 and Baltyk 3 projects represent a breakthrough for Equinor in Poland and supports the country’s ambitions to transform its energy mix.
“Full-scale development of the two projects will constitute an offshore wind hub in the Baltic Sea.
“It will create industrial activity and jobs to support the Polish economy, and supply low-cost renewable electricity to Polish homes and businesses.
“The CfD award confirms our focused strategy of creating value from early access at scale in attractive markets.”
The award from ERO is an important milestone towards the realisation of Baltyk 2 and Baltyk 3, according to Equinor.
It confirms the projects’ inclusion in the first phase of Poland’s ambitious offshore wind development plan, contributing significantly to Poland’s energy transition and the development of the local offshore wind supply chain.
The CfDs are awarded at PLN319.60 (€70) per MWh for up to 25 years, subject to some adjustments and final approval from Polish authorities and the European Commission.
Poland has the ambition to develop 5.9GW of offshore wind by 2030 and up to 11GW by 2040.
Baltyk 2 and Baltyk 3 could generate enough renewable offshore wind energy to power 2 million Polish homes.
Pending all necessary agreements and permits, and subject to the final investment decision from Equinor and Polenergia, construction work could commence as early as 2024.
Equinor vice president for emerging regions in new energy solutions Ingunn Svegarden added: “The award of CfDs to the Baltyk 2 and 3 projects is an important milestone towards Equinor’s ambitions in Poland and the Baltic region.
“Alongside our partner Polenergia, we look forward to further developing these projects to create value, also in the local community.
“The Baltic Sea will be a significant resource for offshore wind energy, and we are only in the early stages of realizing its full potential.”
Equinor was among the first international developers to enter the Polish offshore wind market in 2018 through the acquisition of a 50% interest in the Baltyk 2 and Baltyk 3 projects from Polenergia.
Equinor subsequently acquired from Polenergia a 50% interest in the early-phase Baltyk 1 offshore wind project.
It will operate the projects through the development, construction, and operations phases.