Equinor and Polenergia close financing for Bałtyk 2 and 3 wind farms

Norwegian energy company Equinor and Poland's Polenergia have closed financing for the Bałtyk 2 and Bałtyk 3 offshore wind farms.

Valued at over €6 billion ($6.8 billion), this is the largest project finance transaction in the history of the Polish energy sector, according to Polenergia.

The financing will will be provided by approximately 30 financial institutions, including the National Economy Bank (BGK), the European Investment Bank (EIB) and the Nordic Investment Bank (NIB).

The announcement follows final investment decision, which was reached on 19 May. The projects were awarded Contracts for Difference (CfD) in 2021, securing power prices at approximately €71 ($81) per MWh (2021 price) for 25 years.

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Adam Purwin, president of the Management Board of Polenergia SA, commented in a statement: "We have done something extraordinary: we have closed financing provided by about 30 institutions, the largest players in the international capital environment, obtaining exceptionally good conditions in a market that has been demanding in recent months. We are starting the construction phase so that in three years clean energy from the most modern turbines will flow to Polish homes."

Construction can now begin on the 1,440MW Bałtyk 2 and 3 offshore wind farms, both considered of strategic importance to Poland's energy sector.

Michael Jerzy Kolodziejczyk, president of the Management Board of Equinor in Poland, added: "The strong interest from financial institutions underlines the solidity of these projects, as well as their strategic importance for Poland’s energy transformation and the integration of large-scale renewable energy sources into the national energy system. With key decisions made and financing secured, our focus is now on the safe, timely and efficient implementation of the construction."

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The two wind farms, developed in parallel, largely within the same time schedule, will consist of 100 fixed bottom turbines, placed 22-37km off the coast of Poland.

Siemens Gamesa will supply its SG 14-236 DD turbines for the projects, the largest offshore wind turbines manufactured by the turbine manufacturer to date. Each installed turbine will have a capacity of 14.4MW, with one revolution of the wind turbine’s rotor able to power a Polish household for four days.

The projects are expected to begin operating from 2028 and will provide enough power for two million Polish homes once fully operational.