Oil and coal giants win first Polish offshore wind contracts

The Bałtyk 1 offshore wind farm project is being developed jointly by Equinor and the Polish energy group Polenergia as part of a joint venture (JV), and when completed should have a generating capacity of 1.5GW.

Two other projects were also awarded – the 900MW Morska Farma Wiatrowa Baltic East site, which went to oil multinational Orlen, and MFW Baltica 9, which went to PGE (Polska Grupa Energetyczna), Poland’s largest energy firm and a major gas and coal producer.

“The first auction for offshore wind energy in Poland is an event of significant importance on the path of energy transformation of our country,” said Renata Mroczek, president of the Energy Regulatory Office. The fact that it was successfully carried out is a reason for satisfaction for me. The preparation and organisation of offshore auctions was associated with numerous challenges for the Office I lead in a complex and dynamically changing regulatory environment.

“This is a confirmation of the Regulator’s ability to support the state’s strategic goals in the energy sector. Thanks to the professionalism and commitment of the Office’s experts, including the Renewable Energy Sources Department, a transparent and effective course of the entire procedure was ensured.”

Poland has historically been heavily dependent on coal for electricity, lagging behind other EU countries in developing an offshore wind industry. However its long Baltic Sea coastline offers strong wind resources, making offshore wind a strategic option to diversify its power mix.

Its first auction, held on December 17, followed the Contracts for Difference model, where operators are paid even if the price of electricity drops below a certain amount. In the Polish auction this was set at between €113 and €117 across the three sites.