PGE energy and Dutch Ørsted begin construction of Baltica 2 offshore wind farm

The Baltica 2 offshore wind farm project is being carried out by PGE and Ørsted as a joint venture in which each partner has an equal stake.

The first energy flow from the wind farm is expected in the first half of 2027 and the project is supposed to be completed in the second half of 2027.

The total budget for the project is estimated at around PLN 30 billion (EUR 7.15 bln), both partners are responsible for providing this funding in equal proportions.

PGE's part will be financed from EU funds under the national recovery plan KPO as a loan issued by Poland's state development bank BGK as well as by a project finance formula issued by 25 financial Polish and foreign institutions such as BGK, EIB and EBRD.

The CEO of PGE, Dariusz Marzec, informed that the group sourced around PLN 9 billion (EUR 2.14 bln) for the investment on international financial markets.

"The demand for lending for this investment has doubled our needs. These are American banks, European banks, Polish banks and international financial institutions like the EBRD or EIB," Marzec said.

The chairman of BGK, Miroslaw Czekaj informed that the banks' engagement, together with EU funds, will amount to around PLN 6 billion (EUR 1.4 bln).

"We have signed an agreement for PGE to make its own contribution to the offshore wind farm project to the tune of PLN 3.9 billion from European funds and PLN 1.6 billion to finance the PGE Baltica special purpose vehicle directly," Czekaj said.

"To this we need to add our own funds, financial assembly within the consortium, PLN 530 million for the PGE Group. This shows the bank's involvement, with the use of EU funds, of more than PLN 6 billion," BGK's chairman added.

Baltica 2 is one of two (alongside Baltica 3) stages of the offshore wind farm Baltica.

pel/ han/ nl/