Ørsted, PGE to form JV for 2 offshore wind projects in Polish Baltic Sea

Ørsted A/S has agreed to form an equally owned joint venture with PGE Polska Grupa Energetyczna SA for the development, construction and operation of two offshore wind projects in Poland's Baltic Sea.

Under their agreement, Ørsted will subscribe for new shares representing 50% of the total share capital in PGE's 1-GW Baltica 3 and 1.5-GW Baltica 2 projects. The subscription price amounts to 657 million Polish zlotys.

Both projects are eligible to be included in Poland's 2021 offshore wind allocation round, where 5.9 GW is expected to be awarded.

"The potential of the Baltic Sea for attracting offshore investments is enormous and that is why we are counting on leveraging mutual experience and joint preparation for the operational phase of both projects, especially due to ambitious plans of PGE for offshore. We aim to install at least 6.5 GW of offshore capacity by 2040," said Wojciech Dąbrowski, president of PGE's management board.

Ørsted plans to significantly expands its on-the-ground presence in Poland as part of the joint venture.

The transaction is expected to close in the first quarter of 2021, subject to regulatory approval.

As of Feb. 9, US$1 was equivalent to 3.70 Polish zlotys.