Ørsted will buy into two Polish offshore wind farms with a combined capacity of 2.5GW and develop, build and operate them alongside state power company Polska Grupa Energetyczna (PGE).
The two companies had begun talks over the 1045MW Baltica 3 Baltica 3 (1045MW) Offshoreoff Łeba, Poland, Europe Click to see full details and 1500MW Baltica 2 Baltica 2 (1500MW) Offshoreoff Łeba, Poland, Europe Click to see full details projects in October 2019, with a view to Ørsted buying a 50% stake in special purpose vehicles (SPVs) developing the two wind farms.
Ørsted has now agreed to subscribe for new shares representing 50% of total share capital in the projects, which will be built off the coast of Leba in the northern Pomerania province.
It will pay a total of PLN 657 million (€146 million) for the newly issued shares in the projects.
The transaction is expected to close in Q1 2021, subject to regulatory approval.
Both projects are eligible for Poland’s first offshore wind allocation round, in which 5.9GW of capacity is due to be awarded. It is due to be held in the first half of 2021.
The 1GW Baltica 3 wind farm is the most advanced of the two projects and could be commissioned in 2026, according to PGE.
Rasmus Errboe, Ørsted’s head of the continental Europe region, said: “Together [with PGE], we will invest significantly in harvesting the renewable energy resources in the Baltic Sea while creating economic activity, ramping up the local supply chain, and establishing an industry in Poland that can potentially generate thousands of jobs within manufacturing, operations and maintenance of offshore wind farms.”
As a part of the joint venture Ørsted, will significantly expand its on-the-ground presence in Poland, the Danish developer stated.
Meanwhile, PGE aims to install at least 6.5GW of offshore wind capacity by 2040, and is currently helping to develop just over 4.1GW of Polish offshore wind capacity, according to Windpower Intelligence, the research and data division of Windpower Monthly.
Poland aims to have 3.8GW of offshore wind capacity installed by 2030, 10GW by 2040 and 28GW by 2050.
It will allocate support for 5.9GW of capacity in the first half of 2021, before awarding contracts for difference in competitive auctions beyond that.