ORLEN Secures URE Auction for Baltic East Offshore Wind Project
- Baltic East's bid was 476.88 PLN/MWh, below the regulatory maximum.
- The project will receive CfD support for up to 25 years.
- Final investment decision is expected in 2029–2030.
- First electricity generation is planned for 2032.
Project Overview
The ORLEN Group has secured a significant position in the offshore wind sector with the Baltic East project winning an auction conducted by the Polish Energy Regulatory Office (URE). This victory is a crucial step in expanding Poland's renewable energy capacity and enhancing energy security.
Financial Details
Baltic East submitted a competitive bid of 476.88 PLN/MWh, which is below the maximum price set by the Minister of Climate and Environment. The project will benefit from a two-way contract for difference (CfD), ensuring stable revenues for up to 25 years by compensating for any negative balance between market and auction prices.
Timeline and Future Plans
The final investment decision for Baltic East is anticipated between 2029 and 2030, with the first electricity generation expected by 2032. The project is part of ORLEN's broader strategy to develop offshore wind energy, with other projects like Baltic Power and Baltic West also in progress.
Strategic Importance
Offshore wind development is vital for Poland's energy security and affordability. Baltic East is one of several projects under ORLEN's six secured licenses, contributing to the country's transition towards a zero-carbon economy. The first offshore electricity from Baltic Power is expected to reach consumers next year, with full implementation of all projects targeted by 2040.
Source: ORLEN