PGE Seeks Partners to Build Wind Farms in Polish Baltic Sea
- Business & Finance
Polish state-owned power company Polska Grupa Energetyczna (PGE) is launching a search for a strategic partner to prepare, build and operate offshore wind farms in the Baltic Sea with a total capacity of up to 2,545MW.
On Wednesday, 5 December, PGE Group invited over a dozen potential business partners with experience in this type of investment for talks.
The planned first stage of the group’s offshore programme encompasses the construction of 1,500MW within an area covered by a concession held by Elektrownia Wiatrowa Baltica-2, and 1,045 MW within an area controlled by Elektrownia Wiatrowa Baltica-3, located approximately 25-30km from the coastal city of Łeba.
PGE intends to eventually sell up to a 50% stake in two special purpose vehicles that are preparing the offshore projects, continuing to operate them with the partner on a joint venture basis.
The first electricity from these offshore assets is expected to be delivered in 2025 and the first investment will enter the commercial operation phase the following year.
To meet the requirements, PGE’s partner should have appropriate experience in implementing this type of investment on the European market, be able to support these projects in their technical aspects and in contractor management and to share know-how in this area with PGE.
The undertaking is currently at the stage where the requisite environmental permits are being secured, wind conditions are being surveyed and works on power offtake and other technical activities are underway, PGE said. Preparations for preliminary geological surveys are also in progress.
“Wind measurements in the Baltic Sea in the area of the planned investment are on-going since January 2018. So far, the results confirm very good wind conditions for the surveyed areas. Estimated wind speeds at our locations might exceed 9 m/s,” said Henryk Baranowski, CEO of PGE Polska Grupa Energetyczna.
PGE expects to receive a positive decision on environmental conditions for the wind farm next year.
The offshore wind farm construction programme is in line with Poland’s Energy Policy 2040, recently sent out for consultations, which names offshore as one of the key tools for achieving renewables targets, PGE said.