ORLEN strengthens offshore wind position as Baltic East wins URE auction
The ORLEN Group has reinforced its position in the offshore wind sector after the Baltic East project won an auction for offshore wind farms conducted by the President of the Polish Energy Regulatory Office (URE). The outcome represents a major step towards expanding renewable energy capacity and strengthening the security and stability of Poland’s energy system.
Baltic East submitted a competitive bid with a price of 476,88 PLN/MWh, which is below the maximum price set out in the regulation of the Minister of Climate and Environment.
“The auction win by Baltic East is a key milestone for the ORLEN Group and for Poland’s offshore wind sector as a whole. This success underscores our resolve to deliver projects that enhance the country’s energy security and support the transition towards a zero-carbon economy. With stable financial conditions in place, we are able to move forward with the project, opening up new opportunities for Polish industry and maximising domestic content in the wind farm’s construction and across the wider value chain,” says Ireneusz Fąfara, CEO and President of the Management Board of ORLEN.
“The success we’re announcing today would not have been possible without the commitment of dozens of teams and firms working under a tight schedule, with a clear understanding of the auction’s importance for both the project and the entire sector. Our competitive auction bid was prepared through months of intensive work, technical and economic assessments, financial modelling, in-depth market analysis and close dialogue with suppliers. We’re proud to be delivering a project of such strategic importance for the energy transition,” adds Janusz Bil, President of the Management Board of ORLEN Neptun.
The auction win means that Baltic East will be covered by a support scheme in the form of a two-way contract for difference (CfD), providing predictable revenues and stable conditions for up to 25 years of the project’s operation. The scheme guarantees compensation for any “negative balance”, defined as the difference between the market price of electricity and the auction price.
Baltic East has also been granted preferential debt financing under the National Recovery Plan (KPO) to support construction works in marine areas. The final investment decision is to be taken in 2029–2030, with the first electricity from the Baltic East wind farm expected to be generated in 2032.
Offshore wind development is a cornerstone of Poland’s energy security and a key factor in ensuring affordable electricity supplies. Baltic East is one of the ORLEN Group’s offshore wind projects to be developed under one of six licences it has already secured. The first offshore electricity will reach consumers as early as next year from Baltic Power, a project jointly developed by ORLEN and its partner Northland Power. In parallel, the Baltic West project – covering four licences in the Oder Bank area – is also being progressed. All these projects are being prepared for participation in Poland’s offshore wind support scheme, with full implementation targeted by 2040.
