Vestas edges closer to mega turbine order in Poland as Baltic Power offshore wind farm clears hurdle
Baltic Power partners want to see project financing and permits in place before taking the plunge with giga-scale Polish project.
The renewables arm of Polish fuels group Orlen has reached a conditional investment decision on the 1.2GW Baltic Power offshore wind development, in partnership with the Dutch unit of Canadian utility Northland Power.
Orlen holds more than 51% of the shares in Baltic Power, a joint venture entity that acquired seabed rights to an area located 23km off the Baltic Sea coast, near Łeba, when Poland staged its inaugural offshore wind tender in 2021.
In its statement today (Friday), Orlen said total financing for the Baltic Power wind park is estimated at €4.7bn ($5.2bn ), including capital expenditure and contingency up to €4.1bn and additional financing costs and reserve.
Start of construction of the offshore wind farm is planned for 2023 and commercial operations are planned for 2026, Orlen added.
The Baltic Power stakeholders are currently working on the assumption that project finance will be the preferred form of financing, tied to future cash flows.
Orlen said the investment decision will become final after certain conditions are fulfilled, including finalisation of the financing process and completion of required construction permits.
Baltic Power has also reached a conditional agreement with Vestas to deliver wind turbines for the Baltic Power in Poland.
In its own statement today, Vestas stated confirmed that a new conditional agreement had been reached and added: "If and when the agreement translates into a firm and unconditional order, Vestas will disclose this in a company announcement in accordance with the company’s disclosure policy."
With a swept area of more than 43,000 m2, the V236-15.0 MW is expected to generate up to 80GWh/year, enough to power around 20,000 households.
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