Poland: EIB contributes €400 million to building the EU’s largest offshore wind farm

This article is published in association with European Investment Bank.

• EIB makes leading contribution to development of large-scale Baltic Sea offshore wind farm
• With capacity of 1.5 GW, Baltica 2 is the EU’s largest offshore wind fam to date
• Initial loan under record €1.4 bln EIB financing approved for expanding Polish offshores
• Underpinned by significant EU funding, investment will boost Poland’s energy transition

The European Investment Bank (EIB) signed an agreement to support Poland’s largest utility Polska Grupa Energetyczna (PGE) with a €400 mln loan towards the design and construction of Baltica 2, the European Union’s largest offshore wind farm to date. Baltica 2 will feature innovative technology for a 1.5 GW capacity and sit off the Polish coast in the Baltic Sea. Supported by major European funding, it is being developed by PGE and leading offshore wind company, Denmark’s Ørsted.

The EIB loan is the biggest own resources contribution by a financial institution to the project. It is also the first part of a €1.4 bln package approved by the European Union’s climate bank to support PGE and Ørsted in erecting two new, large-scale offshore wind farms in the Baltic Sea. Featuring state-of-the-art turbine technology, Baltica 2 is due to be completed as early as 2027. It will comprise of 107 turbines located some 40 km north of Poland’s Baltic shore. Together with its sister project Baltica 3, they are to have total capacity of 2.5 GW and double PGE’s existing renewable energy portfolio. Underpinned by significant EU support that includes funds from InvestEU, REPowerEU and Recovery and Resilience Facility, the strategic investment will contribute to Poland’s energy transition and security, as well as strengthening cooperation and energy security in the Baltic Sea region.

“As the climate bank of the European Union and a leading partner of multidimensional energy transition in Poland, the EIB is keenly supporting Baltica 2. The EIB’s investment of €400 million is the largest own resources contribution to this transformative project by a financial institution. Baltica 2 is the biggest offshore wind farm under construction in the European Union. It will increase the share of renewables in Poland’s energy mix and help reduce greenhouse gas emissions. It will strengthen Poland’s energy security and support economic competitiveness by harnessing innovative technologies. I thank all partners involved and keep my fingers crossed for a swift and successful completion of this high-impact project,“ said EIB Vice-President Teresa Czerwińska.

The €400 mln loan to PGE for Baltica 2 comes on top of the EIB financing previously granted to Ørsted to support the roll-out of new wind energy installations, including off the Polish coast. In Poland, the EIB has endorsed multiple energy transition projects by PGE, including to modernise the country’s railway power system. In 2023, EIB also co-financed the country’s first offshore wind farm project.

Background information

The EIB is the EU institution providing long-term financing for sound projects that pursue EU priorities. Owned by the 27 Member States, the EIB offers financing and advisory services to support economic competitiveness, spur innovation, promote sustainable development, enhance social and territorial cohesion, and support a swift and fair transition to climate neutrality.

Last year, the EIB Group granted €89 billion in new financing, with a record €100 billion of total investments supported to the benefit of Europe’s energy security. Nearly 60% of last year’s funding supported climate action and environmental sustainability. The Group – which comprises the European Investment Bank and the European Investment Fund – is on track to meeting its goal of mobilising €1 trillion of climate investment by the end of this decade.

In Poland, more than half of the €5.1 billion provided by the EIB Group in 2023 was awarded to green and climate-friendly projects. Financing for Poland’s energy transition amounted to €1.78 billion that year. The Group will shortly publish results of its operations in Poland in 2024.