PGE and Ørsted have received decisions from the President of the Energy Regulatory Authority on the individual prices in the contracts for difference for both phases of the Baltica Offshore Wind Farm – Baltica 2 and Baltica 3, which are being carried out jointly. Earlier this year, in September, the amount of permissible support level for both phases of the project was approved by the European Commission as a result of the individual support notification for the Baltica offshore wind farm. The individual price in the contract for difference (CfD) for both phases of the Baltica offshore wind farm was set at the maximum allowable level of PLN 319.6/MWh.
– Our Baltica 2 and Baltica 3 projects were the first offshore wind farms in Poland to receive positive decisions from the European Commission and the President of the Energy Regulatory Office (ERO) on approval of the individual level of support. This will secure a large volume of energy at a fixed price, which will primarily benefit energy consumers. With the legislative changes recently adopted by the Sejm, which we as an industry have been seeking, and which will improve the economics of the projects of the first phase of the Polish offshore program, better conditions for investing in offshore wind farms are being created. This is particularly important especially in view of the current difficult macroeconomic environment,” says Wojciech Dąbrowski, CEO of PGE Polska Grupa Energetyczna. – The ERO President’s decisions to grant support for Baltica 2 and Baltica 3 will be one of the key considerations for the final investment decision on the construction of the Baltica Offshore Wind Farm, he adds.
– The possibility of producing clean energy from projects in the Baltic Sea represents a great opportunity for Poland. The Baltica Offshore Wind Farm, with a capacity of about 2.5 GW, is one of the country’s pioneering projects, and we are proud that it was the first to receive approval for support under the Contract for Difference – by both the European Commission and the Energy Regulatory Office. We look forward to continuing our close cooperation with PGE on such a landmark project for Poland,” says Agata Staniewska-Bolesta, Managing Director, Ørsted Offshore Poland.
Obtaining the decision of the European Commission, and then the decision of the President of the ERO approving the level of support, is necessary for all projects implemented in the so-called first phase of the Polish offshore program, which in 2021 received support in the formula of contract for difference (CfD) by the decision of the President of the ERO. The EC’s decision was issued as part of the process of individual notification of investor support required by EU state aid rules. PGE and Ørsted submitted the documentation related to the notification to the ERO in October 2021, from where it then went to the Office of Competition and Consumer Protection. In early February 2022, the dossier was forwarded to the EC. The ERO President’s decision determining the level of support for the projects finalizes the entire process.
According to the schedule, the launch of the first stage of the project, Baltica 3 with a capacity of about 1 GW, is scheduled for 2026. The next stage, Baltica 2 with a capacity of about 1.5 GW, is scheduled to be commissioned in 2027. Both phases of the Baltica offshore wind farm have location decisions (PSzW), environmental decisions, transmission grid connection agreements with the operator, permits for cable laying and maintenance (PUUK), and have been granted the right to a contract for difference (CfD). The project partners have begun work on obtaining construction permits, which are the last permits required before a final investment decision is made.