The ORLEN Group strengthens its position in the offshore wind sector – the Baltic East project has won the auction for offshore wind farms conducted by the President of the Energy Regulatory Office (Urząd Regulacji Energetyki URE). This is an important step towards the development of renewable energy sources and the construction of a secure, stable energy system in Poland.
The Baltic East project submitted a competitive bid of PLN 476.88/MWh, which is lower than the maximum price specified in the regulation of the Minister of Climate and Environment.
“Baltic East’s victory in the auction is a breakthrough moment for the ORLEN Group and the entire offshore sector in Poland. This success confirms our determination to implement projects that increase the country’s energy security and support the transition to a zero-emission economy. Thanks to stable financial conditions, we can move on to the next stages of the investment, creating new opportunities for Polish industry and maximising the share of Polish suppliers in the construction of the farm and the entire value chain” – says Ireneusz Fąfara, President of the Management Board of ORLEN.
The success we are announcing today would not have been possible without the work of dozens of people and companies operating under time pressure, aware of the importance of the auction for both the project and the entire industry. The appropriate preparation of the auction offer is the result of many months of work, technical and economic analyses, financial modelling, good market research and dialogue with suppliers. We are proud to be able to implement a project that is of such strategic importance for the energy transition,” emphasised Janusz Bil, President of the Management Board of ORLEN Neptun.
Winning the auction means that the project will be covered by a support system in the form of a bilateral contract for difference, which will ensure a predictable revenue stream and stable conditions for investment for up to 25 years. This mechanism guarantees coverage of the so-called negative balance, i.e. the difference between the market price of energy and the auction price.
The Baltic East project has been granted preferential debt financing from the National Reconstruction Plan for the implementation of offshore works. The final investment decision will be made in 2029-2030. According to the schedule, the first energy from the Baltic East farm will flow in 2032.
The development of offshore wind energy is fundamental to Poland’s energy security and to ensuring the supply of the cheapest possible energy. Baltic East is the company’s offshore project, implemented under one of the six concessions held by the ORLEN Group. The first electricity from offshore will flow to consumers as early as next year from the Baltic Power farm, implemented by ORLEN together with its partner, Northland Power. At the same time, the Baltic West project is being developed, covering four concessions in the Ławica Odrzańska area. All projects are being prepared to participate in the Polish support system for offshore wind farms. Full implementation of the projects will take place by 2040.
Source: ORLEN
