08/08/2023

PGE with the approval of the Board of Directors of the European Investment Bank to support the financing of the Baltica Offshore Wind Farm

The European Investment Bank (EIB) approved the in-principle financing of the Baltica OWF project to be implemented by the PGE Group. The total financing package amounts to EUR 1.4 billion. This is a significant step towards ensuring an optimal financing structure that will enable the construction of PGE's first offshore wind farms in the Baltic Sea.

Image: Pixabay

Project will consist of several sages - for each of the stages of the Baltica OWF – stages Baltica 2 and Baltica 3 – there is one tranche to be disbursed in the Project Finance formula in the amount of up to EUR 350 million, and one tranche to be disbursed based on guarantees from financial institutions, banks or export credit agencies.

Accelerating the energy transformation is a priority, which is why the EIB Group and the European Commission established the REPowerEU initiative. This aims to make the European Union independent of Russian energy resources and move the EU energy sector towards renewable energy. The Baltica Offshore Wind Farm project meets these goals.

"Obtaining a preliminary credit decision from the European Investment Bank is a significant step for financing the construction of the largest offshore wind farm in the Baltic Sea. The presence of a recognized and experienced international financial institution in financing the project is a signal that we are a reliable partner for financial institutions, the projects we run meet the highest standards, and the interest of the financial sector in cooperation with PGE in the field of offshore wind energy is really high," said Wojciech D?browski, President of the Management Board of PGE Polska Grupa Energetyczna.

"Diversification of energy sources and independence from fossil fuels are key tasks for Poland and the European Union, and Baltica Offshore Wind Farm is a very important project implementing these goals. Supporting energy transition is a priority for the EIB as it accelerates green economic development and supports labor market," said Vice-President of the EIB, prof. Teresa Czerwi?ska.

PGE is building the Baltica OWF together with its Danish partner - Ørsted. The project with a total capacity of approx. 2.5 GW consists of two stages - Baltica 2 with a capacity of approx. 1.5 GW, which is scheduled to be commissioned in 2027, and Baltica 3 with a capacity of approx. is planned by the end of this decade.