Baltica 2 offshore windfarm

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Up to €300 million non-recourse long-term senior loan in favour of PGE Baltica 6 Sp. z o.o. ("Company"), to finance the construction and operation of the 1.5GW offshore wind farm located in the Baltic Sea in Poland (the "Project"). The Bank's financing will be provided alongside multiple commercial banks, export agencies and development banks.

Project ID 55312

Status Disbursing

Location

Poland

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Marcin Poznan - Senior Communication Expert at PGE S.A.
marcin.poznan@gkpge.pl
+ 48 887 856 620
www.baltica.energy and https://pgebaltica.pl/

Project ID 55312

Status Disbursing

Location

Poland

Business Sector

Energy

Notice Type

Private

Approval Date

04 Dec 2024

Disclosure date

20 Aug 2024

Baltica 2 offshore windfarm Board Report (PDF, 0.37MB)

Project description

Project objectives

The Project represents the largest offshore wind farm envisaged in the first phase of the offshore rollout in Poland (which covers 5.9 GW across 8 projects). Once constructed, the Project is expected to generate 5 TWh of electricity annually, contributing approx. 3.6 million tonnes of CO2 in annual savings. The Bank proceeds will be used to finance the Project's capital expenditure.

Transition impact

ETI Score:80

br />Green: The transition impact arises from delivering climate mitigation benefits through the construction of 1.5GW of additional renewable energy generation capacity in Poland expected to generate c. 5TWh of electricity per annum (being the equivalent of the electricity consumption of over two million Polish households).

Client information

PGE BALTICA 6 SP ZOO

The Project is a joint venture between PGE Polska Grupa Energetyczna S.A., a Polish energy utility, and Orsted A/S, one of the global offshore industry leaders.

PGE Baltica 6 Sp. z o.o., a subsidiary of PGE Polska Grupa Energetyczna, is a limited liability company organised in Poland, holding 50% shares of Elektrownia Wiatrowa Baltica-2 Sp. z o.o. (the "Project Co"). The Project Co is a special purpose vehicle, incorporated in Poland, established for the sole purpose of the development, construction, and operation of the Project. The remaining 50% of the Project Co is indirectly owned by Orsted A/S.

Additionality

This is the second and the largest offshore project in the Bank's countries of operation (CoOs). Through this Project, EBRD will send a positive signal to the market and will have the opportunity to continue to extend its support to Poland's ambitious plans to meet the target of at least 42.5 per cent of final energy consumption from renewable sources by 2030. In this context, the proposed offshore rollout is key to achieving this goal.

Environmental & Social Summary

Category A (ESP 2019). The construction of a large offshore wind farm of 1.5 GWe together with associated infrastructure located in the Polish Economic Exclusive Zone of the Baltic Sea approximately 40km from the shore. The Project has been subject to a National Environmental Impact Assessment process for both the offshore and onshore connection infrastructure (export cables, onshore cables, onshore substation) part of the Project and permits have been issued by Competent Authorities in 2020 (updated in 2023) and 2022, respectively. The construction of the "Operations and Maintenance Base in the Port of Ustka" will serve to prepare a base providing facilities for the operation of offshore wind farms. Installation terminal will be located at the port of Gdansk, will serve multiple future offshore windfarms and has been excluded as an associated facility to the Project. Onshore infrastructure has been sited next to sub stations and cable routes of other permitted offshore wind farms to limit habitat fragmentation and other E&S impacts.

The Project is a part of a larger development of offshore wind in Poland that will total 8 GW in the medium term. The development of the Polish offshore wind was subject to a strategic assessment in 2020, which can be found here - https://www.umgdy.gov.pl/plan_morski/wszczecie-postepowania-w-sprawie-transgranicznego-oddzialywania-na-srodowisko/

The nature of the development and size of operations including both onshore and offshore require a full Environmental and Social Impact Assessment ("ESIA") in line with the Bank's and Lenders' requirements. The ESDD has confirmed that the Project is in compliance with Polish and EU requirements and that an appropriate EIA and Habitats assessment has been undertaken. Through additional ESIA documentation comprising Livelihood Restoration Framework, Critical Habitat Assessment, Stakeholder Engagement Plan, Non-Technical Summary and Environmental and Social Action Plan the Project Sponsors have committed to compliance with Lenders E&S requirements, including Bank's Performance Requirements.

The impact assessment for birds is comprehensive and supported, detailing the potential barrier impacts and collision risk assessment. Overall, taking all potential impacts into account, moderate impacts on seabirds from noise, light, vessel activity and a barrier effect are concluded during both the construction and operation phases. However, given the nearness of the site of nature conservation Siupsk Bank, which is the overwintering, resting and breeding ground for birds, a 5 km wide migration corridor will be created in the direction of migration of most species of seabirds (northeast - southwest), facilitating their access to these areas. Moreover, the Sponsor has committed to implementing state of the art radar systems for monitoring of bird collision risks and agreed to use materiality assessment for implementing shut down on demand procedure. With that mitigation the studies concluded that the Project will not lead to the displacement of bird species habitats within the sites of nature conservation.

Considering underwater noise may cause a significant negative impact on protected marine organisms (fish and mammals) in the Natura 2000 site Ostoja Siowiiska (PLH220023), a noise reduction system will be implemented during the execution of the works. The fundamental condition determining the selection of specific noise reduction solutions will be not to exceed the temporary threshold values for fish and marine mammals at the boundary of the Natura 2000 site Ostoja Siowiiska (PLH220023). Further, the permits require ban on piling works between November to end of April each year to limit impacts on the mammals and wintering birds. The Sponsors have committed to real time monitoring of the presence of the marine mammals in the offshore construction area and adaptive management.

Social impacts of the Project related to onshore land acquisition, livelihood impacts on local fishermen, construction stage workers influx and construction heritage impacts, both terrestrial and underwater, have been assessed during the ESDD and Livelihood Restoration Framework was developed, agreed with the Company, and disclosed publicly to align the Project to PR5 requirements. The LRF obliges the Client to compensation activities, including livelihoods restoration measures for the fisheries and other affected parties, in line with Entitlement Matrix and PR5 requirements. Prior to the impact occurring to the fisheries and other affected parties, the Company will develop and start the implementation of the Livelihood Restoration Plan (LRP) referencing the "Sector Deal" considered at the central government by Ministries of Climate, Energy and Agribusiness. LRP will be disclosed to the affected people prior its finalisation and be implemented, together with the "Sector Deal", to meet PR5 standards.

As committed in the SEP, further public consultation will be undertaken during the ESIA disclosure period with local communities and ESIA disclosure consultation meetings report will be produced and disclosed together with ESIA pack prior to the Project approval.

Based on the ESDD an Environmental and Social Action Plan ("ESAP") has been developed to address identified gaps and structure the Project in line with the Bank's PRs. The Bank will monitor further project preparation activities, construction, and operational phases with assistance of the Independent E&S Consultant.

Technical Cooperation and Grant Financing

None

Company Contact Information

Marcin Poznan - Senior Communication Expert at PGE S.A.
marcin.poznan@gkpge.pl
+ 48 887 856 620
www.baltica.energy and https://pgebaltica.pl/

PSD last updated

20 Aug 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Project ID 55312

Status Disbursing

Location

Poland

Business Sector

Energy

Disclosure date

20 Aug 2024

Project description

Up to EUR 300 million non-recourse long-term senior loan in favour of PGE Baltica 6 Sp. z o.o. ("Company"), to finance the construction and operation of the 1.5GW offshore wind farm located in the Baltic Sea in Poland (the "Project"). The Project is a joint venture between PGE Polska Grupa Energetyczna S.A., a Polish energy utility, and Ørsted A/S, one of the global offshore industry leaders. The Bank's financing will be provided alongside multiple commercial banks, export agencies and development banks.

The TI of the Project is Green: The transition impact arises from delivering climate mitigation benefits through the construction of 1.5GW of additional renewable energy generation capacity in Poland expected to generate c. 5TWh of electricity per annum (being the equivalent of the electricity consumption of over two million Polish households).

ESIA disclosure package

SEP Appendix 9.1. Complaint form
Livelihood Restoration Framework
Stakeholder Engagement Plan with grievance mechanism
EIA_Report_OWF Baltica_EN
EIA_OWF_Baltica_Connection_Infr_ENG
Enviromental and social action plan
Non-technical summary_Baltica2_13.08.2024
Crticital Habitat Assesment

Download package in English
Download package in Polish

Full ESIA availability

Full ESIA documentation is available at:

Warsaw Resident Office
53 Emilii Plater Street
Warsaw Financial Center
Suite 1300
00-113 Warsaw
Poland

And

Client website: English version | Polish version

Enquiries

1. Baltica 2
www.baltica.energy
Marcin Poznań – Senior Communication Expert at PGE S.A.
marcin.poznan@gkpge.pl
+ 48 887 856 620
Beata Głuszcz – Communication Manager at Ørsted
beagl@orsted.com
+48 573 412 537

2. Service center in Ustka
https://pgebaltica.pl/
Marcin Poznań – Senior Communication Expert at PGE S.A.
marcin.poznan@gkpge.pl
+ 48 887 856 620

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Environmental and Social Impact Assessments and ESIA summaries are produced by project sponsors, and the EBRD makes them available without any comment or implied endorsement. Any views expressed or statements made in the Environmental and Social Impact Assessment or the ESIA Summary do not necessarily reflect the views or opinions of the EBRD.

Last updated 25 June 2014

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Baltica 2 offshore windfarm

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

Project description

ESIA disclosure package

Full ESIA availability

Enquiries