Baltica 2: The Baltic’s Largest Wind Farm Set to Power Poland

The ambitious project to construct what is set to become the largest wind farm in the Baltic region has officially received the green light, with the first power expected to be generated in 2027. This groundbreaking endeavor is a collaborative effort between Ørsted, a global leader in offshore wind development, and Poland’s largest power group, the state-controlled PGE.

“We are thrilled to announce the commencement of Baltica 2, a flagship project for offshore wind in Poland,” stated Rasmus Errboe, Deputy CEO and Chief Commercial Officer for Ørsted. “We are confident in the value creation potential of this project, which boasts an appealing risk-reward profile.”

Baltica 2 will be situated approximately 40 kilometers off the Polish coast near Ustka, west of Gdansk in central Poland. The wind farm will comprise 107 Siemens Gamesa 14 MW turbines, with a total capacity of 1.5 GW, making it one of the two planned projects under the Ørsted-PGE partnership.

Emphasizing Poland’s commitment to offshore wind energy, the companies highlighted that the country’s energy policy has identified offshore wind as a key technology to facilitate Poland’s transition to a low-emission economy. Poland has pledged to achieve 5.9 GW of offshore wind capacity by 2030 and 11 GW by 2040.

“The Baltica 2 offshore wind farm, the largest renewable energy initiative currently in progress in the Baltic Sea, will play a pivotal role in diversifying Poland’s energy mix, enhancing energy security, and delivering cleaner and more affordable energy,” remarked Dariusz Marzec, CEO of PGE.

To bolster the financial viability of the project, Baltica 2 has secured a 25-year inflation-protected contract for difference (CfD) with the Polish government. The CfD, established in 2021, ensures that the price per MWh will be adjusted annually to inflation. Following the CfD term, Baltica 2 will either sell electricity at market prices or negotiate new power purchase agreements.

The companies announced the final investment decision, revealing that all major component and vessel contracts have been finalized. Baltica 2 has obtained all necessary permits and has signed a grid connection agreement with the Polish transmission system operator PSE.

A diverse team of contractors has been mobilized for the construction phase. Cadeler and Fred. Olsen Windcarrier will oversee the installation, while Van Oord will be responsible for installing foundations and offshore substations.