Project Profiles

Baltic Power Offshore Wind Farm

Last Updated on Dec 24, 2024, 05:00 AM IST
Baltic Power Offshore Wind Farm

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Project at a Glance 

Project Name 

Baltic Power Offshore Wind Farm

Project Type

Greenfield

Project Location 

Polish region of the Baltic Sea

Sector

Energy

Subsector

Wind Energy

Project Value

EUR 4.73 Billion

Project Status

Under Construction

Project Developer/Coordinator

A joint venture of ORLEN Group and Northland Power Inc

Capacity 

1,140 MW

Construction Start Date

2024

Project Completion Date

2026

 

Overview

The Baltic Power offshore wind farm is a greenfield project located in the Polish region of the Baltic Sea. It is developed by a joint venture between the ORLEN Group and Northland Power Inc. The project is valued at EUR 4.73 billion and is currently under construction. It aims to support the transition towards a clean, low-carbon economy.

 

The offshore wind farm will have an installed capacity of 1,140 MW. It will feature 76 offshore wind turbines, each generating 15 MW. The wind farm will cover an area of approximately 130 square kilometers. It is situated 23 km north of the Polish coastline near Choczewo and ?eba.

 

Completion of the wind farm is expected by 2026. The Baltic Power offshore wind farm is one of the most advanced offshore wind energy projects in the Polish Exclusive Economic Zone.

 

Project Background

The Baltic Power offshore wind project is a major joint venture between PKN ORLEN and Northland Power. The two companies will develop, construct, operate, and maintain the offshore wind farm with a total capacity of up to 1,140 MW. Northland Power holds a 49% equity interest, while PKN ORLEN retains the remaining 51%.

 

Situated 22.5 km from the shore, the project will use 12 MW turbines on monopile foundations at depths of 33 to 45 meters. Once operational, the farm is expected to function for over 25 years. It will be built about 23 kilometers offshore near Leba and Choczew and will consist of 76 turbines. The project is set to contribute significantly to reducing CO2 emissions and is expected to meet 3% of Poland's energy needs.

 

Baltic Power is supported by a financial framework established by the Polish Offshore Wind Act, including a government subsidy in the form of a Contract for Difference to ensure investment feasibility and secure project financing. The project has also obtained a permit for the construction and utilization of artificial islands and has a grid connection agreement with the TSO.

 

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Construction preparations began in 2024 with the foundation work, followed by the installation of Vestas wind turbines in 2025. An onshore substation is being developed to handle the energy generated at sea. Major suppliers and experienced contractors from the offshore wind sector, including Polish companies, are engaged to ensure a robust supply chain.

 

The Baltic Power project aligns with the strategic goals of both Northland Power, which is expanding its international assets, and the ORLEN Group, which aims to achieve 9 GW of installed renewable energy capacity by 2030. With an estimated budget exceeding PLN 10 billion, this project plays a key role in advancing sustainable development and energy transition in Poland.

 

Project Location Map

Baltic Power Offshore Wind Farm Map

 

Baltic Power offshore wind farm is located 23 km to the north of the Polish coastline, on the level of Choczewo and ?eba.

 

Technical Specifications

The Baltic Power offshore wind farm will feature 76 Vestas turbines, each with a power-generating capacity of 12 MW and a height exceeding 200 meters. The turbines will be supported by steel pile foundations, each weighing up to 2.4 thousand tonnes and standing 120 meters tall, driven into the seabed up to 50 meters deep by specialized vessels.

 

The wind farm will include two offshore substations. These substations, each with a 2.5 thousand-tonne steel structure, will be installed on foundations and will stand approximately 20 meters above sea level. The substations will receive energy produced by the turbines through an internal cable network. 

 


Read: Top Five Upcoming Offshore Wind Farm Power Projects in Europe


 

In total, the project will involve approximately 355 kilometers of cables, with 130 kilometers being inter-array cables that transmit power from the turbines to the substations. The remaining cables will be used for four export links to transport electricity over a 39-kilometer route, connecting the offshore infrastructure to the onshore substation in Choczewo.

 

To support the operations and maintenance of the offshore wind farm, Baltic Power has secured a lease contract for a 1.1-hectare land at the ?eba seaport. The project is set to begin construction preparations for the turbine foundations in 2024, with the installation of the Vestas turbines planned for 2025. The onshore substation, which will receive energy from the sea, is already under development.

 

Contractors Involved 

Contractor

Role

Offshore Design Engineering (ODE)

Initial technical and building permit design, site design, turbine layout, energy production calculations, budget and schedule

JBO

Wind turbine foundation design

ENPROM

Cable connection route preparation

Vestas

Wind turbine supply (76 V236-15.0 MW turbines)

Cadeler

Wind turbine transport and installation

Steelwind Nordenham

Monopile foundations supply

Smulders and Haizea Bilbao

Transition pieces fabrication and supply

Van Oord

Foundation transportation and installation

Bladt Industries and Semco Maritime

Offshore substations supply

NKT

Offshore export cable design and manufacturing

TELE-FONIKA Kable and JDR Cable Systems

Inter-array cables, onshore export cables, and onshore cable transport and installation

DEME

Offshore cable transport and installation

ERBUD

Wind farm service base construction

 

Project Benefits

Once operational in 2026, the Baltic Power offshore wind farm will add nearly 1.2 GW of capacity to the Polish energy system, fulfilling about 3% of the country’s total electricity demand. The underground connection cables and transmission infrastructure facilities will generate significant property tax revenues for years to come, benefiting local municipalities. This revenue, paid by Poland’s largest state-owned companies, will enable long-term investment projects within the community.

 

The development of the offshore wind farm is expected to create thousands of new jobs, fostering the growth of a new and innovative sector in the Polish economy. As a substantial new source of electricity, the wind farm will enhance the stability of the electricity supply, particularly benefiting residents in northern Poland who currently rely on energy generated in the south.

 

Project Timeline

Baltic Wind Offshore Wind Project Timeline

 

Project cost

The Baltic Power offshore wind farm project is financed by a consortium that includes the European Bank of Reconstruction and Development (EBRD), several export credit agencies (ECAs), and other Equator Principles Financial Institutions (EPFIs). The total project budget is estimated at approximately EUR 4.73 billion, encompassing capital expenditures, insurance of around EUR 4.05 billion, financing costs, and additional reserves.

 

The syndicate supporting the project includes commercial banks, export credit agencies, and multilateral institutions such as the European Investment Bank (EIB), EBRD, Euler Hermes, Export and Investment Fund of Denmark, and Export Development Canada. Project financing accounts for 80% of the total capital costs, with the project partners contributing the remaining capital.

 

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The financing will follow the Project Finance model. In September, Baltic Power's shareholders signed loan agreements totaling about EUR 4.4 billion with 25 financial institutions, both Polish and international. This marks the largest financing raised for a single investment in Poland's history and one of the largest transactions in the offshore wind sector in Europe.

 

Environment Benefits

The wind farm will generate 4,000 GWh of zero-emission electricity annually, avoiding the emission of approximately 2.8 million tonnes of CO2 each year. Sustainable production methods will be employed during the construction phase, including the use of sustainably produced steel for the turbine tower components. 

 

This steel, used for the top elements of 52 out of the 76 wind towers, is made from nearly 100% recycled material, melted in an electric arc furnace powered by renewable energy. This process reduces the CO2 intensity by 66% per kilogram of steel compared to conventional methods. The low emission steel produced by ArcelorMittal in Charleroi, Belgium, maintains the same quality and technological performance as traditionally produced steel.

 

Current Status & Future Outlook

Construction has begun on a service base for the Baltic Power wind farm in ?eba. This base, a joint project between the ORLEN Group and Northland Power, will serve as the primary port for vessels transporting equipment and technical personnel responsible for maintaining the wind farm. The service base will employ approximately 60 people and will support the farm throughout its entire life cycle, which is a minimum of 25 years.

 

According to the latest update in October 2024, First Onshore Link Completed for Baltic Power Offshore Wind Farm in Poland.

 

The service base in ?eba is scheduled to be operational by 2025, a year before the Baltic Power farm itself becomes operational. Spanning an area of approximately 1.1 hectares, the base will include a warehouse for spare parts and a workshop. 

 

In preparation for the offshore installation works set to commence at the end of this year, several critical components of the Baltic Power project are currently under production. Key infrastructure, such as substations for evacuating power from the offshore turbines to the mainland, is being constructed in the Pomerania region. Other important project components are being manufactured in locations including Szczecin, Kluczbork, and ?ary.

 

Conclusion

The Baltic Power offshore wind farm, a EUR 4.73 billion joint venture between ORLEN Group and Northland Power Inc., is a pivotal project in Poland's renewable energy source. Located 23 km off the Polish Baltic Sea coast, it will feature 76 wind turbines with a total capacity of 1,140 MW. Set to become operational by 2026, the farm will supply clean energy to over 1.5 million households, meet 3% of Poland’s electricity demand, and reduce CO2 emissions by 2.8 million tonnes annually. 

 

Supported by robust financial backing from a consortium of 25 financial institutions, including the EBRD and various ECAs, the project will create thousands of jobs and contribute significantly to Poland’s energy transition and sustainable development goals.

 

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