The project companies of offshore wind farm Bałtyk II and Bałtyk III, in which Polenergia S.A. holds a 50% stake, have signed key agreements for the development of two offshore wind farms in the Baltic Sea. These projects, implemented as a joint venture between Polenergia and Equinor Wind Power AS, represent an important step towards the development of renewable energy in Poland. The contracts, concluded on 30 August 2024, cover both the supply and installation of key components necessary for the construction of the wind farms.
One of the important elements of the contracts is the contract for the production of transition components for offshore wind turbines, concluded with the consortium of Smulders Project Belgium NV and Sif Netherlands BV. The contract covers the delivery of a total of 100 transition elements that connect the foundations to the turbine towers, 50 for each farm. Production of these elements is expected to start in the first half of 2025, with completion scheduled for mid-2026. The total value of this contract is estimated to be around €328 million and will depend on changes in the price of materials, such as steel, which may affect the final cost.
Another contract, signed with Enprom sp. z o.o., is for the installation of export cables onshore. The work will involve the construction of cable corridors and the installation of export cables to transmit power from offshore farms to land. The work is scheduled to start in the last quarter of 2024 and be completed in July 2026. The value of this contract is approximately PLN 172.6 million, with possible adjustments depending on additional work that may be commissioned during the course of execution.
The last contract signed concerns the design and construction of offshore transformer stations. Belgian company Iemants NV will handle the construction of two transformer stations, one for each farm. The contract provides for comprehensive design, procurement of materials and turnkey construction of the substations. The schedule provides for completion of the work in October 2026 for OWF Bałtyk II and in April 2027 for OWF Bałtyk III. The value of this contract is estimated at around EUR 350 million and, as with previous contracts, the remuneration will be indexed based on changes in material prices.
The signing of these contracts represents a key milestone in the implementation of offshore wind farms, which are expected to significantly contribute to increasing the share of renewable energy in the Polish energy mix. These projects, although requiring significant capital expenditure even before a final investment decision (FID) is made and full financing is obtained, are on track to be implemented according to schedule, which will allow the farms to be commissioned on time in 2026-2027.
The conclusion of the agreements also entails the need to secure payments to the contractors, which requires the provision of appropriate financial guarantees. As at the date of conclusion of the agreements, the total value of the guarantees from Polenergia is approximately EUR 151 million. Mechanisms included in the contracts, such as the possibility of their termination with appropriate compensation, are designed to secure the interests of both parties, which further emphasises the importance of these contracts for the further development of wind energy infrastructure in Poland.
The implementation of these projects is crucial for the achievement of the country’s climate goals and the sustainable development of the energy sector, which will contribute to the reduction of CO2 emissions and increase Poland’s energy security.
Source: Polenergia
