The European Investment Bank (EIB) has approved the in-principle financing of the 2.5 GW Baltica offshore wind project in Poland, being developed by PGE Group and Ørsted.
The project has two stages, the 1.5 GW Baltica 2 and the 1 GW Baltica 3, planned to be commissioned by the end of 2027 and by the end of this decade, respectively.
The total EIB financing package totals EUR 1.4 billion. For Baltica 2 and Baltica 3, there is one tranche to be disbursed in the project finance formula in the amount of up to EUR 350 million and one tranche to be disbursed based on guarantees from financial institutions, banks, or export credit agencies.
“The presence of a recognized and experienced international financial institution in financing the project is a signal that we are a reliable partner for financial institutions, the projects we run meet the highest standards, and the interest of the financial sector in cooperation with PGE in the field of offshore wind energy is really high,” said Wojciech Dąbrowski , President of the Management Board of PGE Polska Grupa Energetyczna.
With a joint capacity of 2.5 GW, the Baltica 2 and Baltica 3 will create the Baltica Offshore Wind Farm.
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The project will be developed in the Polish part of the Baltic Sea between Łeba and Ustka while the closest wind turbines to the shore will be at least 25 kilometres, according to PGE and Ørsted, the developers of the wind farm.
The Baltica offshore wind farm has already obtained the environmental decision for the offshore wind farm in January 2020. In addition, the project has obtained the location decisions (PSC) and the connection agreements to the transmission network with the operator (PSE), and has been granted the right to a differential contract (CfD).