EBRD Mulls EUR 300 Million Financing for 1.5 GW Baltica 2 Project

August 21, 2024, by Adnan Memija

The European Bank for Reconstruction and Development (EBRD) is evaluating a potential loan of up to EUR 300 million to aid the construction and operation of Baltica 2, the first stage of the Baltica Offshore Wind Farm in Poland.

The 1.5 GW Baltica 2 offshore wind farm, developed by PGE Polska Grupa Energetyczna and Ørsted, will be located in the Polish section of the Baltic Sea approximately 40 kilometres off the coast of Poland between Łeba and Ustka.

If approved, up to EUR 300 million in funds will be provided in the form of a non-recourse long-term senior loan alongside multiple commercial banks, export agencies, and development banks, according to EBRD’s notice.

The deal is currently in the “concept reviewed” phase, with a decision expected by 20 November.

According to EBRD, the project represents the largest offshore wind farm envisaged in the first phase of the offshore rollout in Poland (which covers 5.9 GW across eight projects).

The 1.5 GW Baltica 2 is part of the 2.5 GW Baltica Offshore Wind Farm which will also comprise the 1 GW Baltica 3.

The developers have secured the necessary permits and also received approval from the Pomeranian Voivodeship recently for the construction of the offshore part of Baltica 2.

PGE and Ørsted have also already contracted all the necessary components for the project and signed contracts for the installation of foundations, turbines, and cables. The partners also picked the general contractor for the onshore connection infrastructure.

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The offshore wind farm will consist of 107 Siemens Gamesa 14 MW wind turbines and four offshore substations, installed on monopile foundations.

The developers plan to complete the construction of Baltica 2 by the end of 2027 and Baltica 3 by the end of the decade. Once commissioned, Baltica 2 is expected to generate 5 TWh of clean electricity annually, contributing approximately 3.6 million tonnes of CO2 in annual savings, according to EBRD.