PGE Baltica and àƒËœrsted have formed a joint venture to focus on developing up to 2.5GW of offshore wind energy projects in the Baltic Sea.
The 50/50 joint venture investment agreement between the two companies is designated to develop, build, and operate Baltica 2, with a capacity of approximately 1.5GW and Baltica 3 with a capacity of approximately 1GW.
Consulting firm DNV has been selected to provide technical and commercial advisory services in connection with setting up the joint venture.
The technical and commercial advisory services include a series of technical and commercial workshops on offshore wind and typical provisions of offshore wind-related contracts. DNV has also provided advice to PGE Baltica on the market standard conditions as part of its negotiations on the set up of the joint venture.
DNV will assist PGE Baltica in setting up of service development agreement, the development expenditures plan, the construction management agreement and the operation and maintenance agreement.
The decision to form a joint venture follows the enactment of Poland’s first Offshore Wind Act in January this year.
The act is expected to expand the country’s wind energy market as Poland accelerates its energy transformation towards a low-emission economy whilst ensuring energy security and reductions in greenhouse gas emissions in line with the National Energy and Climate Plan.
According to McKinsey & Company, in the years to come it is estimated that the construction of 6GW in the Baltic Sea will create 77 thousand jobs and bring approximately PLN 60 billion ($15.5 billion) of added Gross Domestic Product value and PLN 15 billion ($3.8 billion) of Corporate Income Tax and VAT revenues.
Prajeev Rasiah, executive vice president & regional manager Northern Europe of DNV’s business area energy systems, said: “The Baltic Sea has always been the Polish window on the world and the offshore wind industry brings new opportunities. Our 10 years’ experience as a leading technical advisor in Poland’s wind projects coupled with over 30 years’ experience in offshore wind in other markets in Europe contributed to supporting PGE Baltica during the negotiation process and in gaining a better understanding of contracting in the offshore wind farms development, construction, and operation phases. Projects like Baltica 2 and 3 will contribute to the growth of the Polish economy, giving renewables, and particularly offshore wind, a key role in the energy transition in Poland.”