1.1 GW Polish Offshore Wind Farm Reaches Financial Close

Business & Finance

September 25, 2023, by Adrijana Buljan

The 1.1 GW Baltic Power offshore wind project in Poland, being developed jointly by the Polish energy company Orlen and Canadian Northland Power, has reached financial close for its 20-year CAD 5.2 billion (around EUR 3.6 billion) non-recourse green financing. The project’s total capital costs are said to be CAD 6.5 billion (around EUR 4.5 billion).

Northland and Orlen signed a credit agreement for the green financing with a consortium of 25 financial institutions several days ago, when the Canadian company said that financial close was expected to follow in the coming days, upon satisfaction of all relevant conditions precedent to the financing being achieved.

On 22 September, the developers announced that the Baltic Power offshore wind farm met all conditions and reached financial close for the financing.

According to a press release from Northland on 19 September, the Canadian developer had also secured all necessary equity funding required for the project.

In the Baltic Power offshore wind farm, Orlen holds a 51 per cent stake and Northland Power holds the remaining 49 per cent, or 559 MW of the project’s total generation capacity of 1,140 MW.

The offshore wind farm will be built in the Baltic Sea, approximately 22 kilometres off the Polish coast near Plaża Wydmy Lubiatowskie, where 76 Vestas V236-15.0 MW wind turbines will be installed.

The Baltic Power project has obtained all environmental approvals and major construction permits, and construction activities have already started with some of the key components currently being manufactured.

Full commercial operations are expected in the latter half of 2026. Once operational, Baltic Power will provide clean energy to over 1.5 million Polish households.