PGE is aiming to sell up to a 50 percent stake in two special purpose vehicles that are preparing the offshore projects, continuing to operate them with the partner on a joint venture basis. The first electricity from these offshore assets will be delivered in 2025 and the first investment will enter the commercial operation phase the following year. The first stage of PGE’s offshore programme will supply electricity to as many as four million households.
Last week (Wednesday 5th December) PGE Group invited over a dozen potential business partners with experience in this type of investment for talks. The planned first stage of the Group’s offshore programme encompasses the construction of offshore wind farms with maximum installed capacity of up to 2545 MW (1500 MW within an area covered by a concession held by Elektrownia Wiatrowa Baltica-2 and 1045 MW within an area controlled by Elektrownia Wiatrowa Baltica-3), located approx. 25-30 kilometres from the coastal city of Łeba.
To meet the requirements, PGE’s partner should have appropriate experience in implementing this type of investment on the European market, be able to support these projects in their technical aspects and in contractor management and to share know-how in this area with PGE.
Offshore wind farms constitute one of PGE Group’s strategic development options after 2020. The undertaking is currently at the stage where the requisite environmental permits are being secured, wind conditions are being surveyed and works on power off-take and other technical activities are under-way. Preparations for preliminary geological surveys are also in progress.
“Wind measurements in the Baltic Sea in the area of the planned investment are on-going since January 2018” said Henryk Baranowski, CEO of PGE Polska Grupa Energetyczna. “So far, the results confirm very good wind conditions for the surveyed areas. Estimated wind speeds at our locations might exceed 9 m/s”.
PGE expects to receive a positive decision on environmental conditions for the wind farm next year. According to the schedule, electricity from PGE Group’s first offshore wind farm might start flowing around 2025, while commercial operation might begin in 2026.
The offshore wind farm construction programme is in line with Poland’s Energy Policy 2040, recently sent out for consultations, which names offshore as one of the key tools for achieving renewables targets.
This offshore project will have a positive impact on the entire Polish economy, creating new jobs and developing industries (including ship building and steel). According to McKinsey & Company calculations, capitalising on the offshore market potential in Poland (approx. 6000 MW by 2030) would contribute approx. PLN 60 billion to GDP in 2020-2030.
PGE Group has begun diversifying its electricity generation sources, aiming to reduce CO2 emissions. Delivering each 1000 MW of offshore wind capacity will reduce CO2 emissions in the Polish economy by 4 million tonnes per year, approximately 100 million tonnes throughout the 25-year wind farm lifetime.
PGE Group is currently the largest producer of green energy in Poland, owning 14 onshore wind farms, 29 hydroelectricity plants, 4 pumped storage plants and one photovoltaic plant at the Żar mountain. The total installed capacity of these assets is close to 2188.9 MW.
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