Baltica Offshore Wind Farm with confirmed level of support
Earlier, in September 2022, the amount of the acceptable level of support for both stages of the project was approved by the European Commission as a result of individual notification of support for the Baltica OWF. The individual price in the contract for difference (CfD) for both stages of the Baltica OWF was set at the maximum allowable level of PLN 319.6/MWh.
– Our Baltica 2 and Baltica 3 projects are the first offshore wind farms in Poland to receive positive decisions of the European Commission and the President of the Energy Regulatory Office regarding the approval of the individual level of support. Thanks to this, a large volume of energy at a fixed price will be secured, and will benefit primarily energy consumers. Together with the legislative changes recently adopted by the Sejm, which we sought as an industry, and which are to improve the economics of the projects of the first phase of the Polish offshore program, better conditions are created for investing in offshore wind farms. This is particularly important, especially in the face of the current, difficult macroeconomic environment - said Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna. – The decisions of the President of the Energy Regulatory Office to grant support for Baltica 2 and Baltica 3 will be one of the key factors for making the final investment decision regarding the construction of the Baltica Offshore Wind Farm – added Wojciech Dąbrowski.
– The Baltic Sea offers great opportunity for Poland to produce clean energy at large scale off its coastline. The Baltica 2 & 3 offshore wind farms will be pioneering offshore wind power generation in Poland, and we’re proud that they are the first offshore wind projects in Poland to get final CfD approval. We look forward to continuing our close collaboration with PGE on the development of these landmark projects – commented Agata Staniewska-Bolesta, Country Manager for Ørsted in Poland.
Obtaining the decision of the European Commission, and then the decision of the President of the Energy Regulatory Office approving the level of support, is necessary for all projects implemented in so-called the first phase of the Polish offshore program, which in 2021 received support in the contract for difference (CfD) formula by the decision of the President of the Energy Regulatory Office. The decision of the European Commission has been issued as part of the process of individual notification of investor support required by EU state aid regulations. PGE and Ørsted submitted documentation related to the notification to the Energy Regulatory Office in October 2021, from where it was then sent to the Office of Competition and Consumer Protection (UOKiK). At the beginning of February 2022, the documentation was submitted to the EC. The decision of the President of the Energy Regulatory Office specifying the level of support for the projects finalizes the whole process.
According to the schedule, the launch of the first stage of the project, i.e. Baltica 3 with a capacity of approx. 1 GW, is planned for 2026. The next stage, i.e. Baltica 2 with a capacity of approx. 1.5 GW, is to be commissioned in 2027. Both stages of the Baltica OWF have location decisions (PSzW), environmental decisions, connection agreements with the transmission network operator, permits for laying and maintenance of cables (PUUK), and have been granted the right to a contract for difference (CfD). Project partners have started work on obtaining building permits, which are the last permits required before making the final investment decision.