PKN Orlen has big aspirations to develop offshore wind energy in the Baltic Sea, not only in Poland. -The potential of the Baltic states’ markets is over 20 GW and, of course, if there are such opportunities, we will be interested in being present on the Latvian and Estonian markets. As in the case of the Lithuanian market, we are conducting analyses in these countries as well – said Anna Łukaszewska-Trzeciakowska, PKN ORLEN Offshore Wind Farms Office Director, in an interview for BalticWind.EU. Reat the BalticWind.EU Country Report LITHUANIA Q4 2021.
Patrycja Rapacka: What role does the Baltic Sea area play in PKN Orlen development strategy as a multi-energy corporation?
Anna Łukaszewska-Trzeciakowska: As PKN ORLEN we have ambitious plans for dynamic development of the energy sector, with offshore wind farms as its pillar. This is a natural direction for us, because in recent years, offshore wind energy has been the fastest growing sector in Europe. Due to particularly good conditions in the Baltic Sea, experts estimate that by 2050 the installations there may reach the power of even 93 GW. Orlen wants to be a leader of this process. In Poland, apart from the Baltic Power project with the capacity of 1200 MW that is being developed, we are trying to acquire as many as possible of the 11 concessions with the total capacity of over 10 GW that will soon be granted under the socalled second phase of offshore wind farm project development.
At what stage is PKN Orlen involved in OWF in Lithuania?
We are observing the Lithuanian market and in the short-term perspective we are interested in cooperation to develop as much power as possible that will appear in the auction in 2023. Therefore, we conduct analyses, dialogue with local stakeholders, and monitor the ongoing regulatory processes. We are also attentively watching the Contract for Differences (CFD) support scheme being processed by the Lithuanian Parliament. It is important, because in countries such as Lithuania or Poland the transformation of the energy sector, which is largely based on conventional sources, requires much more financial resources. Our presence in the first phase of project development in Lithuanian waters is an important foundation for further development. In the long-term perspective, we want to be a partner for further investments realized here.
What place for Lithuanian partners in the realization of projects in this country does PKN Orlen see?
Offshore wind energy is an opportunity to create a new significant industry in our countries, that is why from our perspective the cooperation between Polish and Lithuanian entities is so important already at the stage of investment planning. Apart from the industry partnership, we are also talking about development of a strong supply chain for the industry in the region. We have to remember that offshore wind farm sector is very demanding due to high quality standards. We would like regional and local suppliers to participate as much as possible in the projects, while keeping in mind the high requirements of the industry.
Baltic Power is a project jointly implemented by PKN Orlen and Northland Power. How important is this type of partnership in offshore investments?
The execution of such investments is an extremely complicated project in terms of organization, construction, and financing. Thanks to Baltic Power we know how to manage such a project, which allows us to reduce the risk of costly mistakes in subsequent projects. At PKN ORLEN we have built a strong team of experts capable of executing such projects, but it has to be remembered that each project is governed by different conditions and requirements. Therefore, at this stage it is difficult to conclude whether, and even more so who, will be the investment’s partner.
How does the experience of PKN Orlen operations in Lithuania transfer to offshore wind farms?
Our experience comes first and foremost from the long-term presence of Orlen Lietuva in this market. This is certainly our advantage as we are a reliable business partner in this country. This is an important aspect that allows us to look at investments from a holistic perspective – not only as an energy producer, but also as a distributor.
Which other countries of the Baltic area are of interest to PKN Orlen (Estonia, Latvia)?
The potential of the Baltic states’ markets is over 20 GW and, of course, if there are such opportunities, we will be interested in being present on the Latvian and Estonian markets. As in the case of the Lithuanian market, we are conducting analyses in these countries as well. The estimated potential of both countries is similar to the one that will be realised in Poland by 2030. Therefore, it is crucial to cooperate, take advantage of the experience of the Polish market and seize the opportunities that the energy transformation in our countries brings.
The full interview is available in BalticWind.EU Country Report LITHUANIA Q4 2021