The project joint venture partners Equinor (50%) and Polenergia (50%) have reached financial close for the Bałtyk 2 and Bałtyk 3 projects. Two project financing packages of over EUR 3 billion for Bałtyk 2 and over EUR 3 billion for Bałtyk 3 including ancillary facilities, have been secured.
The offshore wind projects were awarded Contracts for Difference (CfD) in 2021, securing power prices at approximately EUR 71 per MWh (2021 price) for 25 years, with inflation indexation. The wind farms are project financed with gearing of approximately 80%. The projects support Equinor’s expected double-digit nominal equity rate of return for renewables and low carbon investments.
Equinor is responsible for the construction phase and will be the operator of the two offshore wind farms. Onshore construction work is ongoing, fabrication of key components has started, while marine operations will start next year. Total power capacity of the projects is 1440 MW, enough to power 2 million Polish homes. Full commercial power production is expected in 2028. The individual project finance packages will fund the capital investment and the other expenses of each of the projects during the construction process totaling approximately EUR 7.2 billion.
Danske Commodities, an Equinor subsidiary, will provide route-to-market services including balancing and power offtake for the first three years of operations.
Following strong interest from lenders, Bałtyk 2 and Bałtyk 3 have secured competitive terms and conditions. The final group, comprising of around 30 financial institutions, includes the most experienced in the sector along with many of Equinor’s core banks, the Nordic Investment Bank and the European Investment Bank.
Final investment decisions for Bałtyk 2 and Bałtyk 3 were taken by the project joint venture partners, 19 May.
Senior vice president for Renewables in Europe, Trine Borum Bojsen:
“Building a profitable renewables business through safe execution and operations is key to delivering on Equinor’s strategy. With financial close reached for Bałtyk 2 and Bałtyk 3, the last important milestone is passed ahead of full-scale construction. We appreciate the strong interest and support from lenders. This underpins the attractiveness of the projects and the confidence in Polenergia and Equinor as developers.”
Country Manager in Poland, Michał Jerzy Kołodziejczyk:
“Bałtyk 2 and Bałtyk 3 represent the beginning of a new era in Poland's offshore wind energy development. These wind farms are set to contribute to Poland's industrial future by producing renewable electricity for Polish households, creating employment opportunities, and enhancing both energy security and the energy transition. We will collaborate with industry partners to ensure their delivery is safe and efficient.”
