Société Générale PGE’s Financial Advisor on 2.5 GW Baltica Offshore Wind Farms

PGE Polska Grupa Energetyczna has selected Société Générale as a financial advisor for the construction of the Baltica 2 and Baltica 3 wind farms in the Polish Baltic Sea.

With a combined capacity of 2.5 GW, Baltica 2 and Baltica 3 represent the largest investment of this type in the Polish part of the Baltic Sea, PGE said.

The procedure for selecting a financial advisor was conducted on the basis of the Public Procurement Law in the form of sectoral negotiations with publication.

”The selection of a financial advisor for the Baltica 2 and Baltica 3 offshore wind farm construction project in the Baltic Sea is another step in the implementation of the PGE Group’s Offshore Program. Cooperation with an institution with an established position on the European financial market, such as Société Générale, proves that PGE, being the largest electricity company in Poland, enjoys the trust of financial institutions,” said Wojciech Dąbrowski, president of the management board of PGE Polska Grupa Energetyczna.

Five contractors submitted applications for admission to the procedure, and finally PGE received offers from three contractors in the procedure. The prices of all submitted bids were within the contracting authority’s budget, and the best bid of PLN 8.5 million (EUR 1.86 million) net was submitted by Société Générale. The contract with the selected contractor will be concluded after the end of the ten-day deadline for appeals.

PGE is developing Baltica 2 and Baltica 3 through an equal joint venture with Ørsted.

The Baltica 3 wind farm with an installed capacity of 1,045 MW will be commissioned in 2027, and the closing of financing for this investment is planned for 2023.

The Baltica 2 wind farm with a capacity of 1,498 MW will be commissioned in 2028, and the closing of financing for this investment is planned for 2024.

The project will be implemented in the multi-contracting formula. PGE will finance its part of the expenses related to the construction of the Baltica 2 and Baltica 3 farms with equity and by obtaining external debt in the project finance formula.