Ørsted Proceeding with Construction of Baltic’s Largest Wind Farm

The project to build what is being billed as the Baltic’s largest wind farm received final approval with first power targeted for 2027. The project will be jointly developed by Ørsted in partnership with Poland’s largest power group, the state-controlled PGE.

“With today’s announcement, we’re ready to build Baltica 2, a flagship project for offshore wind in Poland,” said Rasmus Errboe, Deputy CEO and Chief Commercial Officer for Ørsted. “We’re satisfied with the value creation of the project, which has an attractive risk-reward profile.”

Baltica 2 will be located approximately 40 kilometers (25 miles) off the Polish coast near Ustka, which is located west of Gdansk in central Poland. The project which will consist of 107 Siemens Gamesa 14 MW turbines, will have a capacity of 1.5 GW and is one of two planned by the partnership.

The companies highlighted that Poland’s energy policy singles out offshore wind to be developed until 2040 to be a key technology to make Poland a low-emission economy. Poland has committed to 5.9 GW of offshore wind capacity by 2030 and 11 GW by 2040.

“The Baltica 2 offshore wind farm, the largest renewable energy project currently under development in the Baltic Sea, will diversify Poland’s energy production, enhance energy security, and provide cleaner and more affordable energy,” said Dariusz Marzec, CEO of PGE.

Helping to support the financial case for the development, Baltica 2 has a 25-year inflation-protected contract for difference (CfD) in place with the Polish state. The initial price was set in 2021 and is being adjusted to inflation. The price per MWh will be annually adjusted to inflation. After the CfD ends, Baltica 2 will receive the market price for electricity or enter new power purchase agreements.

Announcing that they had taken the final investment decision, the companies reported all major component and vessel contracts had been signed. The wind farm has obtained all permits and has signed a grid connection contract with the Polish transmission system operator PSE.

A broad team of contractors has been aligned to implement the construction. It will be installed by Cadeler and Fred. Olsen Windcarrier, while Van Oord will be installing foundations and offshore substations.