View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
February 1, 2021updated 16 Nov 2021 11:00am

Northland Power acquires stake in PKN Orlen’s offshore wind project

Canadian company Northland Power has acquired a 49% interest in Polish firm PKN Orlen's Baltic Power offshore wind project.

By Umesh Ellichipuram

Canadian company Northland Power has acquired a 49% interest in Polish firm PKN Orlen’s Baltic Power offshore wind project.

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

With a total capacity of up to 1.2GW, Baltic Power is located nearly 23km offshore from Poland’s coast in the Baltic Sea. The project is currently mid-development.

Northland Power president and CEO Mike Crawley said: “Today’s announcement reflects Northland’s continued growth and leadership in renewable energy and strengthens our position as a global leader in offshore wind development.

“We are excited to partner with PKN Orlen to expand our presence in Europe through the development of the Baltic Power offshore wind project, but more importantly, further contribute to the global decarbonisation transition by helping Poland fulfil its renewable energy ambitions.”

PKN Orlen is one of the largest companies in Eastern Europe, with 3.2GW of generation capacity. It is part of the Orlen group, and operates in five European countries and Canada.

As per the terms of the agreement, Northland plans to invest approximately $78.3m (C$100m). This includes the purchase price as well as an amount towards the development of the project this year.

Under the new partnership, Northland and PKN Orlen have agreed to co-develop the Baltic Power opportunity. The development is expected to secure a contract for difference offtake agreement for 25 years.

This lies in lines with Northland’s investment objective of creating projects supported by revenue contracts that deliver predictable cash flows.

Baltic Power already received a location permit as well as signed a grid connection agreement. It filed its environmental permit last year.

Construction activities will begin in 2023, with commercial operations expected to start from 2026. Upon completion, Baltic Power will increase Northland’s gross offshore wind capacity in Europe to nearly 2.4GW (1.5GW net).

Related Companies

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology