EIB Grants €400M Loan for Poland's Offshore Wind Farm to Boost Renewable Energy and Security

€1.4 Billion EU-backed Investment Will Transform Poland’s Energy Landscape with the Help of PGE and Ørsted.

The European Investment Bank (EIB) has signed a major €400 million loan agreement with Polska Grupa Energetyczna (PGE) to support the design and construction of Baltica 2, the European Union’s largest offshore wind farm to date. The innovative 1.5 GW wind farm will be located off Poland's Baltic Sea coast and is set to become a landmark project in the EU's renewable energy push. The project is being developed by PGE, Poland's leading utility, and Ørsted, a major Danish offshore wind company renowned for its pioneering technology in the sector.

This loan is the largest contribution by any financial institution from its own resources to the Baltica 2 project, and forms part of a €1.4 billion package approved by the EIB, with backing from several EU climate and energy initiatives. Baltica 2 is set to feature cutting-edge turbine technology and will include 107 turbines located approximately 40 km from Poland’s shore. When completed, Baltica 2 will not only be the largest offshore wind farm in the EU but will also play a central role in the region's transition to clean energy.

The Baltica 2 project, expected to be completed by 2027, will have a capacity of 1.5 GW, which, when combined with its sister project, Baltica 3, will total 2.5 GW. This will double PGE’s existing renewable energy portfolio and significantly boost Poland's energy production from sustainable sources. The wind farm is expected to make a substantial contribution to Poland’s energy transition, help reduce greenhouse gas emissions, and bolster energy security in the Baltic Sea region.

EU and EIB Support for Green Energy Transition

The EIB’s €400 million loan is the largest single contribution from a financial institution towards the project, marking a significant step in the bank's commitment to supporting Poland’s energy transformation. This financing is part of a larger €1.4 billion funding package, which is supported by various EU initiatives, including InvestEU, REPowerEU, and the Recovery and Resilience Facility.

EIB Vice-President Teresa Czerwińska commented, “As the climate bank of the European Union, we are proud to support Baltica 2, the biggest offshore wind farm currently under construction in the EU. This transformative project will help increase the share of renewables in Poland’s energy mix, reduce greenhouse gas emissions, and enhance energy security, while fostering economic competitiveness. The EIB’s investment in Baltica 2 will also promote the use of innovative technologies, furthering Poland’s energy transition and strengthening its role as a leader in renewable energy in the region.”

The project’s significance extends beyond Poland. Baltica 2 and its sister project Baltica 3 will play a critical role in regional cooperation on energy security and sustainability within the Baltic Sea area. The large-scale offshore wind farms are a key part of the EU’s broader energy strategy, which aims to reduce dependency on fossil fuels and accelerate the region's green energy transition.

A Commitment to Sustainable Energy in Poland

The EIB has long supported PGE in its efforts to modernize Poland’s energy infrastructure and promote renewable energy. In addition to this €400 million loan for Baltica 2, the EIB has also backed various energy transition projects by PGE, including the modernization of Poland’s railway power system. In 2023, the bank co-financed Poland’s first offshore wind farm project, marking another milestone in the country's transition to sustainable energy.

PGE and Ørsted’s collaboration on the Baltica projects is a testament to the strength of public-private partnerships in driving the energy transition. By leveraging state-of-the-art technology and significant EU funding, these projects will not only contribute to Poland’s energy security but also position the country as a key player in Europe’s green energy revolution.

The EIB’s financial support, combined with the substantial backing from the EU, underscores the transformative potential of renewable energy projects in Poland and across Europe. As Baltica 2 and Baltica 3 take shape, they will not only contribute to meeting Poland’s renewable energy goals but also provide a model for large-scale offshore wind developments across the EU and beyond.

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This major investment is a clear indicator of the EU’s commitment to creating a more sustainable energy future while supporting economic growth, job creation, and regional cooperation in the energy sector. With Baltica 2 leading the charge, Poland is poised to become a key hub for offshore wind energy in Europe, setting an example for other nations to follow in the fight against climate change.