The ORLEN Group has made the final investment decision on the construction of Poland’s first Baltic Power wind farm. The investment, which will add nearly 1.2 GW of power to the Polish system in 2026, will be carried out jointly with Canada’s Northland Power.
Baltic Power will be able to produce clean, accessible energy that can power 1.5 million households. The investment decision means that the corporation has a complete set of construction permits and has secured all farm components and financing for the project. In preparation for the offshore installation infrastructure, the corporation has also started construction of a terminal in Świnoujście.
The Baltic Power farm will generate electricity equivalent to 4,000 GWh, or about 3% of Poland’s current electricity production. This will help avoid the emission of approximately 2.8 million tonnes of CO2 per year.
Installation of the farm’s foundations will begin in 2024, and in 2025, 76 Vestas wind turbines, with a unit capacity of 15 MW and a height of more than 250 metres, will stand on the farm.
According to the ORLEN Group, an onshore substation is already under construction to receive energy from the sea. Baltic Power has agreements with major contractors and suppliers that secure the entire supply chain – the manufacture, transportation, and installation of all key components of the farm. They include the world’s most experienced suppliers in the offshore wind sector, including companies from Poland.
The total budget for the project is estimated at around €4.73 billion and includes capital expenditure with insurance of around €4.05 billion, as well as financing costs and additional provision.
The project will be financed under the Project Finance formula. In September, Baltic Power’s shareholders signed loan agreements totaling approximately €4.4 billion with 25 Polish and international financial institutions in this regard. This is the largest financing obtained for a single investment in Poland’s history and one of the largest transactions of its kind in the offshore area in Europe.
Adrian Andrzejewski