PGE and Orsted notified an individual price for IMF Baltica 2 and Baltica 3

PGE and Ørsted notified an individual price in the differential contract for both joint stages of the Baltica – Baltica 2 and Baltica 3 offshore wind farm project, stated the companies. After verification of the documentation by the Energy Regulatory Office and the Competition and Consumer Protection Office, it was forwarded to the European Commission.

"The establishment of final energy prices in the differential contract with the European Commission is one of the key elements that will allow us to make a final investment decision on the construction of the Baltic Sea Wind Farm. The differential contract will secure a large volume of energy at a fixed price, which is a benefit not only for investors, but above all for energy consumers," said PGE president Wojciech Dąbrowski, quoted in the communication.

The companies expect a decision by the European Commission over the next few months.

"We hope to conclude the discussion with the European Commission in the autumn of this year, which is about one year after the application to the ERO. However, the EC decision does not complete the process of determining the final price of the differential contract. Then there will be a review from the Energy Regulatory Office, which will decide the final level of support for each of the two stages of the Baltic Wind Farm," added Søren Westergaard Jensen, Director of Baltic's Marine Wind Farm for Ørsted and p.o. Director of offshore management in Ørsted Poland.

In April 2021 the President of the Energy Regulatory Office granted jointly implemented by PGE and Ørsted both stages of Baltica – Baltica 2 and Baltica 3 – support in the differential contract (CfD), indicating in the decisions the maximum price of support PLN 319,6/MWh. Both stages of the Baltica Marine Wind Farm – Baltica 2 and Baltica 3 – are implemented in the so-called first phase of the support system – which assumes that support is granted by individual decision of the President of ERO. In view of the requirements of the EU guidelines on State aid for energy and environmental protection and the national rules for granting support in the first pre-accession phase of the system established by the Law on the Promotion of Electricity Production from offshore wind farms, an individual notification of support for the project to the European Commission is necessary.

PGE and Ørsted still in October 2021 submitted documentation concerning individual notification to the ERO, from where it went to the UOKiK. In early February 2022, the dossier was forwarded to the European Commission.

According to the schedule, the launch of the first stage of the project, i.e. the Baltica 3 with power up to 1045.5 MW, is planned for 2026. The next stage, i.e. the Baltica 2 with power up to 1497 MW, is to be devoted by 2027. These investments will help accelerate the Polish energy transition. Both stages of IMF Baltica have localization decisions (PSzW), environmental decisions for the maritime part, transmission network connection agreements with the operator, and have received the right to a differential contract (CfD). In 2022, the project partners expect to receive an environmental decision for the transmission part on land, as well as work on obtaining construction permits. This is the last permit required before making the final investment decision, recalled.

Source: ISBnews