The PGE Capital Group and Danish Ørsted – joint venture partners in the Baltica offshore wind farm project – will get significantly closer to realizing the largest wind farm in the Polish part of the Baltic Sea this year.
In the coming months, it is expected to obtain the last required permits leading to the final investment decision. Subsequent tenders for the execution of individual stages of the investment may be a great opportunity for the domestic industry.
– The next steps in the Baltica 2 and 3 projects will involve obtaining permits. We are waiting for the environmental decision for the transmission infrastructure, then we will apply for the construction permit. This is the last permit we need to make a final investment decision. In addition, we also have a large number of ongoing proceedings, we are acquiring components for all major investment areas – says Søren Westergaard Jensen, acting managing director of Ørsted Offshore in Poland, to Newseria Biznes agency.
In mid-January this year, PGE Capital Group and Danish Ørsted launched a tender for the preparation of a construction project together with obtaining a building permit for both Baltica 2 and 3 stages. The companies have already launched the largest tenders for the main components of the investment, including offshore wind turbines and, more recently, for the lease of the wind turbines installation vessels.
– We have submitted an application to the European Commission, the so-called individual notification, which will allow us to determine the level of subsidies for the project. We expect this matter to be concluded in 2022 – says Søren Westergaard Jensen.
In the autumn of 2021, PGE and Ørsted started the process of individual negotiations with the European Commission on setting an individual price in the differential contract for both stages of the Baltica offshore wind farm. This will be an important element in bringing the investors closer to the final investment decision.
The Baltica offshore wind farm with a total installed capacity of up to 2.5 GW is being constructed according to schedule. The commissioning of the first stage of the investment, i.e. Baltica 3, with the capacity of approx. 1 GW, is planned for 2026. In turn, the next stage, Baltica 2, with a capacity of about 1.5 GW, is to be commissioned by 2027.
Both phases already have location decisions (PSZW), environmental decisions, transmission grid connection agreements with the operator and have been granted the right to a contract for difference (CfD). The green energy produced by them will be able to power up to 4 million households over the next 30 years (this is the projected lifetime), which can be compared to a metropolitan area four times larger than Tri-City.
– Polish industry can play a significant role in Baltica 2 and 3. We will of course organize a competitive procurement procedure, but we can already see that Polish industry will play an important role here. During the reconnaissance of the investment area we cooperate practically exclusively with Polish companies and most of the consultants involved in the project come from Poland. Ørsted Poland as a signatory of the sector agreement has committed to support the development of the local supply chain – explains acting Managing Director of Ørsted Offshore in Poland.
The sector agreement was signed last September by about 200 entities, including state-owned companies and foreign concerns, such as Ørsted, which develop offshore wind farm projects in partnership. The Polish supply chain for offshore wind farms includes more than 400 companies. Last year, the Baltica offshore wind farm investors prepared a joint supply chain plan to ensure maximum participation of Polish companies in the project.