Ørsted and PGE Complete 2.5 GW Polish Offshore Wind Deal

PGE and Ørsted have closed the joint venture agreement for two Polish offshore wind projects with a combined capacity of up to 2.5 GW.

With the closing of the agreement, first announced in February, PGE and Ørsted now each own 50 per cent of the shares in the offshore wind projects Baltica 2 and Baltica 3, together comprising the Baltica Offshore Wind Farm, the largest offshore wind project in the Polish part of the Baltic Sea.

The partners will jointly build and operate the offshore wind farms.

In mid-March, the President of the Polish Office of Competition and Consumer Protection approved the joint venture. Subsequently, the partners submitted an application for registration to the National Court Register and have now closed the transaction.

“PGE, as the largest producer of electricity in Poland, with extensive experience in the domestic energy sector, has invited one of the leaders in the global offshore wind energy market to jointly develop, construct and operate offshore wind projects,” said Wojciech Dąbrowski, President of the Management Board at PGE.

”The combination of the knowledge and experience of Ørsted and PGE provides a solid foundation for the implementation of such an important investment in the domestic economy, which is the construction of two offshore wind farms in the Polish Exclusive Economic Zone of the Baltic Sea.”

Baltica 2 and Baltica 3 have already received environmental permits and signed grid connection agreements, and were awarded contracts for difference by the Polish Energy Regulatory Office.

Subject to Ørsted’s and PGE’s final investment decisions, the 1 GW Baltica 3 could become operational in 2026, while the 1.5 GW Baltica 2 could become operational before 2030.

“I’m delighted that we have established a strong offshore wind partnership with Poland’s leading utility. We will bring our decades of experience to this new market to deliver green energy, create industrial development and local jobs, and assist Poland in becoming a leading offshore wind nation,” said Rasmus Errboe, Senior Vice President and Head of Region Continental Europe at Ørsted.