Baltic Power – final investment decision
The ORLEN Group is embarking on a momentous venture in green energy, marking the largest investment of its kind in Central Europe. The decision to proceed with the construction of the Baltic Power wind farm, Poland’s inaugural wind project, has been greenlit. ORLEN is spearheading this initiative in collaboration with the Canadian company Northland Power.
The Baltic Power wind farm, a project led by the ORLEN Group, is set to inject a substantial 1.2 GW of energy into the Polish energy grid by 2026. This capacity is sufficient to provide clean, renewable energy to 1.5 million households.
With the investment decision in place, the company has secured all essential permits, acquired the required components for the wind farm, and arranged the necessary financing for the project. Additionally, the ORLEN Group has commenced the construction of the terminal in Świnoujście, a pivotal element of the offshore industry’s infrastructure.
Project meaning
Baltic Power represents a substantial stride in the energy transformation efforts of both Poland and Europe. Notably, it is among the few projects that have progressed to the implementation phase over the last three years, overcoming challenges associated with the pandemic and other obstacles.
By 2025, the first offshore wind farm in Poland is poised to become a tangible reality. The ORLEN Group is not halting its progress with this project but intends to leverage its experience and infrastructure for the execution of additional wind farms. Five more projects are on the horizon, boasting a cumulative capacity of 5.2 GW.
Baltic Power possibilities
Baltic Power is projected to generate 4,000 GWh of energy annually, equivalent to roughly 3% of Poland’s national electricity production. This substantial output will help prevent the emission of approximately 2.8 million tons of CO2 each year. The wind farm’s construction is slated to commence in 2024 and will encompass 76 Vestas wind turbines, each with an individual capacity of 15 MW and standing at a height exceeding 250 meters. Simultaneously, work is underway on a land-based power station that will facilitate the collection of energy from the sea.
The comprehensive budget for the project is approximately EUR 4.73 billion, encompassing both investment expenses and financing. The project will be financed through the Project Finance model, and loan agreements totaling around EUR 4.4 billion have been secured with 25 financial institutions. This represents the largest funding ever obtained for a single investment in Poland’s history and is one of the most substantial offshore transactions in Europe. The agreements solidify the robust business underpinnings of the Baltic Power project.
Source: orlen.pl