Ørsted, PGE close JV for 2.5-GW Polish offshore wind farm

Ørsted A/S (CPH:ORSTED) and PGE Polska Grupa Energetyczna SA (WSE:PGE) have closed their joint venture (JV) deal for the Baltica 2 and Baltica 3 offshore wind projects totalling up to 2.5 GW in Poland, the companies said on Thursday.

In the transaction, unveiled in February, the Danish energy group agreed to acquire 50% in the two project companies for PLN 657 million (USD 173m/EUR 144m).

The JV was approved by the President of the Polish Office of Competition and Consumer Protection in March, and after subsequently filing an application for registration to the National Court Register, the partners have completed the deal. Each now own 50% of the projects and will together build and operate them. Subject to final investment decisions, the 1-GW Baltica 3 could come on stream in 2026, and the 1.5-GW Baltica 2 before 2030.

"PGE, as the largest producer of electricity in Poland, with extensive experience in the domestic energy sector, has invited one of the leaders in the global offshore wind energy market to jointly develop, construct and operate offshore wind projects," said PGE's management board president Wojciech Dąbrowski.

The two projects, which make up the Baltica offshore wind farm, already have environmental permits and grid connection agreements in place. In April, they secured contracts for difference (CfD) from the Polish Energy Regulatory Office.

(PLN 1.0 = USD 0.263/EUR 0.218)

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