Polish utility PGE Polska Grupa Energetyczna SA (WSE:PGE) said today it has secured in-principle financing approval from the European Investment Bank (EIB) for its 2.5-GW Baltica offshore wind project in Poland.
PGE is developing the wind farm together with Denmark’s Ørsted A/S (CPH:ORSTED). The project has two stages, the 1.5-GW Baltica 2, which is targeted to be commissioned in 2027, and the 1-GW Baltica 3 planned by the end of the decade.
The EIB financing package totals EUR 1.4 billion (USD 1.5bn). For each of the project’s stages there is one tranche to be disbursed in the project finance formula of up to EUR 350 million and one tranche to be disbursed based on guarantees from financial institutions, banks or export credit agencies, PGE explained.
“Obtaining a preliminary credit decision from the European Investment Bank is a significant step for financing the construction of the largest offshore wind farm in the Baltic Sea,” said Wojciech Dabrowski, president of the management board of PGE Polska Grupa Energetyczna.
According to EIB vice-president Teresa Czerwinska, Baltica offshore wind farm is an important project in achieving the key tasks for both Poland and the EU of diversifying energy sources and ending reliance on fossil fuels.
(EUR 1 = USD 1.098)