Equinor and Polenergia secure €7.2bn for Bałtyk offshore wind projects in Poland

In a landmark development for Poland’s clean energy transition, Equinor ASA and Polenergia SA have reached financial close for the twin Bałtyk 2 and Bałtyk 3 offshore wind farms, securing over €7.2 billion in project financing. This milestone positions the two ventures as the most significant renewable energy infrastructure projects currently underway in the Baltic region and underscores growing investor confidence in the Central and Eastern European energy transition.

The projects are being developed as a 50:50 joint venture between Norwegian energy giant Equinor and Polenergia, the largest private energy group in Poland. The combined offshore capacity of 1,440 megawatts (MW)—720 MW per site—is expected to generate enough clean power to supply two million Polish homes. With onshore work already initiated and offshore marine operations slated for 2026, both wind farms are on track to begin full commercial operation by 2028.

Why Is the Bałtyk Offshore Wind Projects Financial Close Significant?

The financial close for Bałtyk 2 and Bałtyk 3 is not merely a procedural checkpoint; it is a critical signal of financial de-risking and full investor commitment for one of the largest energy infrastructure ventures in Poland’s history. Each project has independently secured financing packages exceeding €3 billion, backed by over 30 lenders including top-tier institutions such as the European Investment Bank and the Nordic Investment Bank.

The projects are structured with an estimated debt gearing of approximately 80%, consistent with global best practices in offshore wind project finance. This leverage allows the developers to maximize equity returns while diversifying financial exposure. Equinor has guided to a double-digit nominal equity return expectation—reinforcing the company’s view that renewables, particularly offshore wind, remain economically viable even amid macroeconomic tightening.

This development arrives at a time when offshore wind project financing in Europe is gaining momentum despite inflationary headwinds, material cost surges, and turbine supply chain delays. Bałtyk’s success demonstrates how robust offtake structures and experienced developers can still secure funding on competitive terms.

What Are the Contract and Regulatory Frameworks Behind Bałtyk 2 & 3?

Bałtyk 2 and Bałtyk 3 were awarded Contracts for Difference (CfD) by Polish regulators in 2021, locking in inflation-indexed power prices at approximately €71 per megawatt-hour (MWh) for a 25-year duration. These CfDs provide long-term revenue stability and were essential in enabling project finance structures acceptable to major international banks.

Under this framework, the projects benefit from one of the most investor-friendly policy backdrops in Central and Eastern Europe. Since Poland’s Offshore Wind Act came into force, it has helped catalyze several gigawatts worth of auction pipelines, with Bałtyk 2 and 3 leading the first wave.

Final investment decisions (FIDs) for the two projects were made on May 19, 2025, greenlighting full-scale execution and triggering drawdown of debt facilities.

How Will the Projects Be Constructed and Operated?

Equinor will serve as the lead developer and operator during both the construction and operational phases. Onshore preparation and manufacturing of key components are already underway, while offshore activities will begin in 2026. The two wind farms will comprise 100 fixed-bottom turbines located between 22 and 37 kilometers from the Polish coast in the Baltic Sea.

A centralized operations and maintenance (O&M) base will be located in Łeba, Gdańsk region. Equinor owns this base, which will serve as a marine coordination hub for construction vessels and eventually long-term service crews. All major suppliers, including turbine manufacturers and cable system providers, have already been selected—many of whom are internationally recognized for offshore project delivery.

Equinor’s subsidiary Danske Commodities will handle the power offtake and balancing responsibilities for the first three years of operation. This internal alignment with power trading helps de-risk the commercialization phase and ensures revenue optimization.

What Does Bałtyk 2 & 3 Mean for Poland’s Clean Energy Targets?

With a combined capacity of 1.44 GW, the Bałtyk offshore projects are expected to account for a significant share of Poland’s 2030 renewable energy target. They also contribute to meeting the European Union’s broader Fit for 55 climate package, which mandates a 55% reduction in greenhouse gas emissions from 1990 levels by 2030.

Poland has historically relied on coal for over two-thirds of its electricity generation, making offshore wind essential for diversifying the national grid. According to Michał Jerzy Kołodziejczyk, Equinor’s country manager in Poland, the Bałtyk projects mark the dawn of a new energy era—bringing job creation, local supply chain engagement, and improved energy security.

How Do These Projects Fit Into Equinor’s Global Strategy?

Equinor’s offshore wind strategy is built around geographic diversification and portfolio-scale investments. The company currently has renewable assets in the UK (Dogger Bank), the U.S. (Empire Wind), South Korea, and Germany. In Poland, Bałtyk 2 and 3 are just the beginning.

Equinor and Polenergia are also maturing Bałtyk 1, a separate 1.56 GW project scheduled to participate in Poland’s upcoming 2025 offshore wind auction. Through its Polish subsidiary Wento, Equinor operates over 200 MW of onshore wind and solar assets, with a pipeline exceeding 3 GW across various renewable and storage technologies.

This aggressive expansion is backed by Equinor’s clear capital allocation strategy that blends hydrocarbons, renewables, and low-carbon solutions into a balanced growth model. Importantly, Equinor continues to supply Poland with natural gas via the Baltic Pipe, further entrenching its position as a pillar of the country’s energy security.

Market Sentiment and Investor Perspectives

Equinor’s share price has been relatively stable over the past quarter, trading within a narrow range as investors balance near-term hydrocarbon cash flows with longer-term renewables ramp-up costs. Market analysts have responded favorably to the financial close, viewing it as a sign of execution discipline in Equinor’s renewables business.

Institutional investors, including European pension funds and infrastructure debt specialists, have shown increased interest in fixed-income structures tied to ESG-compliant, inflation-hedged energy assets—precisely the model offered by Bałtyk 2 and 3.

Equinor’s ability to secure 80% debt gearing without sacrificing commercial returns is seen as a bullish indicator for the broader offshore wind sector, especially in a capital-constrained environment. Polenergia’s stock, listed on the Warsaw Stock Exchange, has also drawn retail investor attention, rising approximately 4% in the days following the FID announcement.

What’s Next for Offshore Wind in Poland?

The spotlight now turns to Bałtyk 1 and the upcoming 2025 auction round. Industry insiders expect further consolidation in the Polish offshore wind segment, with larger European developers seeking to partner with local firms to gain a foothold. Regulatory momentum is building, and Poland is expected to issue at least 6–8 GW of new licenses by 2030.

Additionally, the EU’s Green Deal Industrial Plan is likely to streamline permitting and access to financing for qualifying offshore projects, including those in Poland. Analysts believe that Poland could become the Baltic Sea’s central offshore wind hub if execution continues at this pace.

Equinor and Polenergia, with proven experience, secured financing, and a developing asset base, are now strongly positioned to dominate Poland’s offshore landscape over the next decade.