The Polish Energy Regulatory Office (URE) has awarded a Contract for Difference to Orsted and PGE’s Baltica 3 and Baltica 2 (2500MW) offshore wind projects and RWE’s 350MW FEW Baltic 2 project.
The Baltica 3 and 2 CfDs have been awarded at a maximum of PLN319.60 (€70) per megawatt-hour in accordance with the Decree of the Minister of Climate and Environment of Poland and the Offshore Wind Act.
Orsted said the CfD award effectively confirms that the Baltica offshore wind farm has been selected for the first phase of Poland’s ambitious offshore wind buildout programme.
In February 2021, Orsted 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 Orsted’s and PGE’s final investments decisions, the Baltica 3 phase of the project (up to 1GW) would start generating power around 2026, while the Baltica 2 phase (up to 1.5GW) could become operational before 2030.
FEW Baltic 2 is being developed by RWE subsidiary Baltic Trade and Invest.
The CfD awards are subject to final approval from the European Commission.
Orsted senior vice president and head of regional continental Europe Rasmus Errboe said: “The contract award for Baltica 3 and 2 is a big milestone for Polish offshore wind and for Orsted’s and PGE’s joint ambitions in Poland.
“Subject to closing of the joint venture agreement, we look very much forward to delivering these important infrastructure projects and to help Poland harness the large green energy resources in the Baltic Sea.
“The offshore wind industry will be a cornerstone in Poland’s transition to green power and has the potential to create thousands of Polish jobs.”
Wojciech Dabrowski, chief executive of PGE Capital Group, added: “The decision of the President of the Energy Regulatory Office brings the Offshore Programme and the Baltica offshore wind farm closer to realisation.
“Offshore wind in Poland now has a solid foundation to be developed and it is currently the PGE Capital Group’s priority.
“In our application for the CfD we also presented how we intend to carry out our investments in offshore wind farms as the leader of this new industry in Poland. We are committed to strengthen the local supply chain.”
URE president Rafal Gawin said: “These are very important decisions for investors and the entire market. Good cooperation with entrepreneurs contributed to the quick processing of applications and issuing decisions in such a short time.
“Offshore wind farms are the only large-scale and zero-emission technology using renewable energy sources, which has the potential to significantly contribute to reducing the risk of power shortages.”
URE said that the other applications for first phase CfD support are still being considered.
They are PKN Orlen and Northland Power’s 1.2GW Baltic Power, Equinor and Polenergia’s 720MW each Baltyk 2 and 3, and Ocean Wind’s 200MW each B-Wind and C-Wind developments.