Green Forum • 30 January, 2025 at 4:44 PM
The European Investment Bank (EIB) signed an agreement to support Poland's largest utility Polska Grupa Energetyczna (PGE) with a €400 million loan towards the design and construction of Baltica 2, the European Union's largest offshore wind farm to date.
Baltica 2 will feature innovative technology for a 1.5 GW capacity and sit off the Polish coast in the Baltic Sea. Supported by major European funding, it is being developed by PGE and leading offshore wind company, Denmark's Ørsted.
The EIB loan is the biggest own resources contribution by a financial institution to the project. It is also the first part of a €1.4 billion package approved by the European Union's climate bank to support PGE and Ørsted in erecting two new, large-scale offshore wind farms in the Baltic Sea. Featuring state-of-the-art turbine technology, Baltica 2 is due to be completed as early as 2027. It will comprise of 107 turbines located some 40 km north of Poland's Baltic shore. Together with its sister project Baltica 3, they are to have total capacity of 2.5 GW and double PGE's existing renewable energy portfolio. Underpinned by significant EU support that includes funds from InvestEU, REPowerEU and Recovery and Resilience Facility, the strategic investment will contribute to Poland's energy transition and security, as well as strengthening cooperation and energy security in the Baltic Sea region.
“As the climate bank of the European Union and a leading partner of multidimensional energy transition in Poland, the EIB is keenly supporting Baltica 2. The EIB's investment of €400 million is the largest own resources contribution to this transformative project by a financial institution. Baltica 2 is the biggest offshore wind farm under construction in the European Union. It will increase the share of renewables in Poland's energy mix and help reduce greenhouse gas emissions. It will strengthen Poland's energy security and support economic competitiveness by harnessing innovative technologies. I thank all partners involved and keep my fingers crossed for a swift and successful completion of this high-impact project,“ said EIB Vice-President Teresa Czerwińska.
The €400 million loan to PGE for Baltica 2 comes on top of the EIB financing previously granted to Ørsted to support the roll-out of new wind energy installations, including off the Polish coast. In Poland, the EIB has endorsed multiple energy transition projects by PGE, including to modernise the country's railway power system. In 2023, EIB also co-financed the country's first offshore wind farm project.