EBRD to Fund Poland’s Baltica-2 Offshore Wind Project

The European Bank for Reconstruction and Development (EBRD) is considering to provide non-recourse long-term senior loan of $332.5 million in favour of a joint venture between PGE Baltica 6 and Denmark’s Orsted for the construction and operation of the 1.5-GW Baltica 2 offshore wind project off the Polish coast in the Baltic Sea.

The Bank’s financing will be provided alongside multiple commercial banks, export agencies and development banks. If approved, the funds will be provided in the form of a non-recourse long-term senior loan alongside multiple commercial banks, export agencies and development banks, the EBRD said.

The Project represents the largest offshore wind farm envisaged in the first phase of the offshore rollout in Poland (which covers 5.9 GW across 8 projects) is expected to be commissioned in 2027. Once constructed, the Project is expected to generate 5 TWh of electricity annually, contributing approximately 3.6 million tonnes of CO2 in annual savings. It will also have 14-MW Siemens Gamesa wind turbines.

The project will be equivalent to electricity consumption of two million households in Poland and the bank proceeds will be used to finance the Project’s capital expenditure. The transaction is currently under a concept reviewed status with an approval date set for 20 November 2024.

Help from US Marines

Work on the project development is progressing. At the end of last month, US marine robotics company Ocean Infinity wrapped up the survey to identify sub-surface boulders across a 540-km terrain designated for Baltica 2.

This is the second and the largest offshore project by the EBRD in the countries where it is operating. Through this Project, EBRD will send a positive signal to the market and will have the opportunity to continue to extend its support to Poland’s ambitious plans to meet the target of at least 42.5% of final energy consumption from renewable sources by 2030. In this context, the proposed offshore rollout is key to achieving this goal.