The Polish Ministry of Infrastructure has launched further administrative procedures related to the granting of concessions for new offshore wind sites in Polish waters of the Baltic Sea. In particular, the rivalry between the two largest companies – PKN Orlen and PGE Polska Grupa Energetyczna, which are already developing the first offshore farms in Poland – is getting tougher.
ORLEN Group informed in its announcement of 2 February this year that it applied for 7 new concessions for construction of wind farms on the Baltic Sea. After launching another stage of administrative procedure the company will apply for granting the remaining 4 concessions in this area. The total capacity available in the areas covered by the applications is estimated at around 7 GW.
– We want to invest in offshore wind farms, which is one of the most important development directions not only for our company, but also for the whole Polish economy. We have the expertise and the resources to be a leader in this process. Therefore, we would like to acquire as many new concessions as possible. It is important due to the desired economies of scale effect, which will enable business participation and maximize Polish entrepreneurs’ contribution to the offshore wind value chain – explains Daniel Obajtek, President of the PKN ORLEN Management Board.
Under the ORLEN2030 strategy, by the end of the decade the Company will have spent PLN 47 billion on investments in modern power generation, including offshore wind projects. Currently, the company is implementing the Baltic Power project (1.2 GW) with its Canadian partner Northland Power. Development of energy potential on the Baltic Sea is one of the most important development projects of ORLEN Group, implemented by a portfolio of subsidiaries: ORLEN Neptun and Energa Morskie Farmy Wiatrowe.
PGE has also filed further applications
In turn, PGE informed that it has submitted another application to the Ministry of Infrastructure for a new location permit (area 46.E.1.) for the construction of an offshore wind farm in the Baltic Sea. The site is located on the Słupsk Shoal, in close proximity to the Baltica 2+3 project being developed by PGE in cooperation with Ørsted.
Since November 2021, the PGE Group has submitted a total of 6 new applications to the Ministry of Infrastructure for location permits to build offshore wind farms in the Baltic Sea, including two joint applications with Enea and one with Tauron.
Currently, PGE is carrying out investments on the Baltic Sea with a total capacity of approx. 3.5 GW, based on three location permits obtained in 2012 (Decision No. OWF/3/12, OWF/4/12, OWF/5/12).
In the coming months, the company expects to obtain important administrative decisions concerning, among others, the following issues: environmental permits for the connection infrastructure, followed by construction permits. Tenders for individual stages of the investment are underway.
The PGE Group’s strategic goal in the area of offshore energy is to build at least 6.5 GW of power by 2040.
The potential of the Baltic Sea is interesting for more and more investors
Currently, about 2.2 GW of wind power is installed in the Baltic Sea, and experts estimate that by 2050 it could reach a level of as much as 93 GW. The potential of the Baltic Sea results mainly from conditions that are favorable for wind energy, such as its low salinity, relatively shallow depth, and constant strong winds throughout the year. According to “Poland’s Energy Policy until 2040”, 9 to 11 GW of offshore wind capacity is to be created in Polish waters.
Source: PKN Orlen, PGE Polska Grupa Energetyczna