Ørsted and PGE to spearhead offshore wind projects in Baltic Sea

Danish energy giant Ørsted has entered into a significant partnership with Poland’s leading energy sector company, PGE Polska Grupa Energetyczna S.A. (PGE), to co-develop, construct, and operate two substantial offshore wind projects in the Baltic Sea. The joint venture aims to harness a total potential capacity of up to 2.5 GW from these initiatives.

Ørsted will acquire a 50% stake in PGE’s two offshore wind projects, Elektrownia Wiatrowa Baltica-3 sp. z o.o. (‘Baltica 3′) and Elektrownia Wiatrowa Baltica-2 sp z o.o. (‘Baltica 2′), for a sum of PLN 657 million ($178 million). Baltica 3, with a capacity of about 1 GW, and Baltica 2, with about 1.5 GW, are poised to become integral parts of Poland’s renewable energy framework. The projects are eligible for Poland’s 2021 offshore wind allocation round, which anticipates awarding a total of 5.9 GW.

Baltica 3, the more advanced of the two, is expected to become operational by 2026. The completion of the transaction, pending regulatory approvals, was projected for Q1 2021, establishing a foundational step for both companies in this significant market.

Martin Neubert, Chief Commercial Officer and Deputy Group CEO of Ørsted, expressed his enthusiasm for the partnership: “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.”

Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna, highlighted the broader economic and environmental impacts: “Offshore wind energy is a great opportunity for the Polish economy and Polish entrepreneurs. It is estimated that over 100 domestic entities can be successfully involved in the preparation, construction, and operation of wind farms in the Polish part of the Baltic Sea. The Polish Ministry of Climate and Environment estimates the potential offshore energy capacity in the Baltic Sea to be approx. 11 GW by 2040 and estimates the total value of the investments to be up to PLN 160 billion.”

The operational phase of Baltica 2 and 3 is expected to supply green energy to approximately 4 million households while helping to offset 8 million tons of carbon emissions annually, aligning with global climate goals and enhancing Poland’s energy security with sustainable solutions.

Together, these projects underscore a significant stride toward Poland’s goal to install at least 6.5 GW of offshore capacity by 2040, leveraging the joint expertise of Ørsted and PGE to advance the nation’s renewable energy landscape.