Poland Awards 3.4+ GW of Offshore Wind Capacity to Three Developers, PGE Moves to Acquire RWE’s Project

PGE Polska Grupa Energetyczna (PGE), Orlen Group, and a consortium of Equinor and Polenergia have secured more than 3.4 GW of capacity in Poland’s first-ever offshore wind auction held on 17 December. The projects the Polish government awarded Contracts for Difference (CfDs) are Baltica 9 (PGE), Baltic East (Orlen Group), and Bałtyk 1 (Equinor and Polenergia).

The Polish government is delivering the CfD support scheme in the form of two-way CfDs, providing predictable revenues and stable conditions for up to 25 years of the projects’ operation, guaranteeing compensation for any difference between the market price of electricity and the auction price.

The 975 MW Baltica 9 secured a contract at PLN 489/MWh (approximately EUR 116.27/MWh), the 900 MW Baltic East at PLN 476.88/MWh (approx. EUR 113.39/MWh), and the 1,560 MW Bałtyk 1 at PLN 492.32/MWh (approx. EUR 117.06/MWh).

The first power at all three offshore wind farms is expected to be produced in December 2032.

The results that the Polish Energy Regulatory Office released on 18 December show that bids were placed for four projects, including PGE’s Baltica 1, which did not secure a CfD in this auction.

However, PGE’s Baltica 9 offshore wind project could see more than 975 MW of installed capacity as the developer said on 18 December that it signed a preliminary agreement with RWE to purchase its project located right next to the Baltica 9 site.

According to PGE, adding RWE’s FEW Baltic II offshore wind project to Baltica 9 will create an offshore wind farm with a total capacity of approximately 1.3 GW. The offshore wind farm RWE is developing at the site adjacent to Baltica 9 is planned to have an installed capacity of 350 MW.

“The conclusion of the first-ever offshore auction in Poland is a breakthrough moment for the development of offshore wind energy in the Polish part of the Baltic Sea. The auction was a success, guaranteeing the continuity of project implementation and ensuring the stability of local content development”, said Dariusz Lubera, CEO of PGE Polska Grupa Energetyczna. 

“The combination of Baltica 9 and the FEW Baltic II project, and thus the implementation of a wind project with a total capacity of 1.3 GW, will allow us to achieve high cost efficiency and, therefore, the lowest possible energy prices for consumers.” 

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