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PGE – Siemens agreement: offshore wind turbines for the Baltica 2 project

Poland's largest state-owned energy company, PGE, signs a landmark agreement with Siemens Gamesa Renewable Energy to supply 107 offshore wind turbines for the Baltica 2 project. The project is expected to be completed by the fourth quarter of 2027.

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Poland’s largest state-owned energy company, PGE, signs a landmark agreement with Siemens Gamesa Renewable Energy to supply 107 offshore wind turbines for the Baltica 2 project.

Offshore wind turbines: a revolutionary decision for Poland

Each turbine will have a capacity of 14 megawatts, for a total capacity of 1,498 MW, and is expected to be installed by the fourth quarter of 2027. This agreement represents the largest contract in the history of renewable energy in Poland.

PGE CEO Wojciech Dąbrowski hailed the agreement as “a groundbreaking decision,” noting that the project alone will be able to provide green energy to about 2.4 million Polish homes. This is an important step towards Poland’s goal of allocating 10.9 GW of offshore wind energy capacity by 2030, with the first round of installations scheduled to begin in 2026. The second round of auctions is scheduled to begin in 2025, with installations closer to the end of the decade.

PGE and Ørsted’s major commitment to the development of renewable energy in Poland

In February 2021, PGE and the Danish partner Ørsted have signed an agreement to form a 50/50 joint venture for the development, construction and operation of two offshore wind energy projects – Baltica 2 and 3 in the Baltic Sea – with a total potential capacity of up to 2.5 gigawatts. According to PGE’s strategy, Baltica 2 and 3 should be completed by 2030, with the duo representing the largest renewable energy investment in Poland to date, worth 44 billion zlotys ($10.5 billion), according to Deputy Climate Minister Ireneusz Zyska.

Although the value of the wind turbine contract has not been disclosed, industry experts note that the cost of the turbines typically represents 20% to 30% of the total value of the investment. This suggests that the overall cost of the Baltica 2 project could be considerably higher, indicating a major commitment by PGE and Ørsted to the development of renewable energy in Poland.

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