Ørsted and PGE have a taken final investment decision (FID) on the 1500MW Baltica 2 wind farm 40km off the Polish coast near Ustka.
The project is expected to be fully commissioned in 2027, according to the parnters.
Baltica 2 has a 25-year inflation-protected contract for difference (CfD) in place with the Polish state.
The nominal starting price per MWh will be determined based on the agreed 2021 price of EUR71.82 plus accumulated inflation from 2021 until the CfD starts, said Orsted. The price per MWh will be annually adjusted to inflation.
The wind farm has obtained all permits and has signed a grid connection contract with the Polish transmission system operator PSE.
All major component and vessel contracts for Baltica 2 have also been signed, locking in the majority of the project’s CAPEX, which significantly derisks the project, according to Orsted.
Baltica 2 will use the Port of Gdansk for the storage, pre-assembly, and offshore installation of wind turbine components.
The wind farm will comprise 107 Siemens Gamesa 14 MW-222 wind turbines (pictured), which will be installed by Cadeler and Fred. Olsen Windcarrier, while Van Oord will be installing foundations and offshore substations.
Orsted deputy chief executive 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. Together, we’re writing a new chapter in the Polish energy sector, and we’re setting up an industry that will bring jobs and industrial development to Poland for decades to come.”
Dariusz Marzec, CEO of PGE, added: “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 compared to fossil fuel sources.
“This investment represents a significant step in Poland’s energy transition and serves as a major boost to economic development, attracting new investments to the entire Polish economy and helping to create new jobs”.