Danish renewable energy specialist Ørsted has signed an agreement with PGE Polska Grupa Energetyczna to form a 50/50 joint venture for the development, construction and operation of two offshore wind projects in the Baltic Sea.
The two projects, Baltica 2 and Baltica 3, have a total potential capacity of 2.5 GW and are eligible to be included in Poland’s 2021 offshore wind allocation round. Baltica 3 is likely to be the first project online, with a target of 2026.
Ørsted will issue new shares to PGE to pay for the deal, and the transaction is expected to close in Q1 2021.
Martin Neubert, CCO and deputy CEO of Ørsted, commented: “Poland is emerging as the front runner in offshore wind in the Baltic Sea and we are very excited to enter the Polish market with this joint venture with PGE. This transaction brings together Ørsted’s unparalleled track-record in developing and constructing large-scale offshore wind farms with PGE’s extensive knowledge of and experience in the Polish energy market and its regulatory framework. Our new joint venture is strongly committed to delivering on the Polish Government’s ambitious plans for the deployment of offshore wind.”
Last month PGE, Enea and Tauron Polska Energia signed a letter of intent to create a joint company for the purpose of developing wind projects in the Polish Exclusive Economic Zone of the Baltic Sea.
”The energy potential of the Baltic Sea is enormous and the conditions in the Polish part of the sea are among the best for this type of investment. We should take advantage of this. Ultimately, we can connect up to 28 GW of capacity in offshore wind farms to the Polish system and thus become the region’s leader,” Kamila Tarnacka, vice president of the Polish Wind Energy Association, said last month.