PGE Polska Grupa Energetyczna, together with its Danish partner Ørsted, has reached a final investment decision (FID) for the construction of the 1,498 MW Baltica 2 offshore wind farm. The investment, worth approximately 30 billion zloty, is expected to start producing emission-free electricity in the first half of 2027.
The Baltica 2 project, a 50/50 joint venture between the two partners, is expected to be fully operational in the second half of 2027. It represents one of the largest investments of its kind in the Polish energy sector and will contribute significantly to the country’s energy transition.
The long-awaited FID took place on 29 January 2025, as announced by PGE in its current report No. 5/2025. The FID was made by the partners of Elektrownia Wiatrowa Baltica-2. The day before, on 28 January, the Supervisory Board of PGE adopted a resolution (corporate decision) approving the investment project.
Executed Agreements
According to PGE’s current reports, on January 29, 2025, PGE and relevant entities from the PGE capital group entered into agreements related to the implementation and financing of MFW Baltica 2.
The parties signed an amended shareholders’ agreement regulating, among other things, corporate governance principles for Baltica 2 during the construction phase, integrated project team operations during construction, parties’ commitments regarding financing and other support for Baltica 2 during construction, share transfer restrictions, and consequences of material breach of obligations and change of control over the shareholders.
Agreements were also signed regulating construction management services by the appropriate PGE group entity for onshore operations and by the appropriate Ørsted group entity for offshore operations.
The parties executed agreements governing operations and maintenance services after wind farm commissioning, with a PGE group entity responsible for onshore operations and an Ørsted group entity for offshore operations.
Additionally, loan agreements were signed under which Baltica 2 shareholders will provide debt financing (in addition to equity financing), along with agreements for the sale of electricity generated by the offshore wind farm under the Baltica 2 project to the company’s shareholders.
Financial Structure
Project financing has been secured through a complex structure involving 25 financial institutions, both Polish and international. As reported by PGE, concurrent with the project agreements, Baltica 6 entered into loan agreements with associated security agreements to finance Baltica 2’s construction. The loan agreements were concluded with a consortium comprising 25 Polish and foreign financial institutions, including Bank Gospodarstwa Krajowego S.A., the European Investment Bank, and the European Bank for Reconstruction and Development. Under these agreements, Baltica 6 will receive project finance funding (non-recourse project finance model) of approximately 11.1 billion złoty for the construction period and subsequent 22 years, with access to additional and reserve credit lines of approximately 1.5 billion złoty.
A significant aspect of the financing is its non-recourse project finance structure, meaning debt repayment will be sourced from future revenues generated by the wind farm. This financing structure is typical for large infrastructure projects and demonstrates high confidence from financial institutions in the venture.
Yesterday, PGE also signed a loan agreement with Bank Gospodarstwa Krajowego for funds from the National Recovery and Resilience Plan under Investment G3.1.5 “Construction of Offshore Wind Farms (Offshore Wind Energy Fund)” through which BGK granted PGE a loan up to 3.9 billion złoty.
Baltica 2 Project Details
Baltica 2 represents a key element in Poland’s energy transition and the development of the offshore wind sector in the Baltic Sea. The collaboration with Ørsted, a global leader in offshore wind energy, ensures access to international know-how and experience in implementing similar projects.
The Baltica 2 offshore wind farm is the largest Phase I offshore wind project by generation capacity currently under development in the Polish Baltic Sea zone by PGE Group and Ørsted. Its 1,498 MW capacity will enable green wind energy production for approximately 2.4 million consumers.
The offshore portion of Baltica 2 will be built in the Polish Baltic Sea zone between Ustka and Choczewo. The project will consist of 107 turbines, each with 14 MW capacity, distributed across approximately 190 square kilometers. The nearest turbine will be located approximately 40 km from shore. The turbines will be installed on monopile foundations. Four offshore transformer stations will be constructed for the wind farm.
The onshore component, comprising connection infrastructure essential for Baltica 2’s operation, will be located in Osieki Lęborskie, Choczewo municipality, Wejherowo county. It will include an onshore transformer station and underground cable lines to transmit electricity generated by the offshore wind farms to the onshore transformer station. From there, the electricity will be fed into the National Power System.
The operations and maintenance base servicing Baltica 2’s turbines will be established in the southwestern section of Ustka port. It will provide continuous technical supervision of the offshore wind farms and will comprise an administrative building and spare parts warehouse. Service vessels will dock at the quay. The long-term operation of the service base in Ustka will stimulate development for the city and the entire region through potential job creation in the port area.
Source: PGE, own sources
