DNV Backs PGE in Offshore Wind Negotiations with Ørsted

DNV has advised PGE Baltica on the setup of a joint venture with Ørsted dedicated to developing two offshore wind projects in the Polish Baltic Sea.

DNV provided technical and commercial services related to setting up the joint venture for developing, building, and operating the 1.5 GW Baltica 2 and the 1 GW Baltica 3 projects.

The company has been providing a series of workshops on offshore wind and typical provisions of offshore wind-related contracts, as well as advice on the market standard conditions as part of the negotiations for establishing the joint venture.

The evaluation and review of the agreement documentation include aspects such as the service development agreement (SDA), the development expenditures plan (DEVEX), the construction management agreement (CMA), and the operation and maintenance agreement (OMA).

“The Baltic Sea has always been the Polish window on the world and the offshore wind industry brings new opportunities,” said Prajeev Rasiah, Executive Vice President & Regional Manager Northern Europe of DNV’s business area Energy Systems.

“Our 10 years’ experience as a leading technical advisor in Poland’s wind projects coupled with over 30 years’ experience in offshore wind in other markets in Europe contributed to supporting PGE Baltica during the negotiation process and in gaining a better understanding of contracting in the offshore wind farms development, construction, and operation phases.”

Ørsted and PGE Polska Grupa Energetyczna signed the agreement to form the 50/50 joint venture at the beginning of February.

PGE secured the environmental permits for Baltica 2 and Baltica 3 in January 2020, and both projects are eligible to be included in Poland’s 2021 offshore wind allocation round, where a total of 5.9 GW will be offered via Contracts for Difference (CfDs) by the end of June.