The JV will oversee work on two offshore wind projects in the Baltic Sea.
The two projects, namely Baltica 2 and 3, will have a total potential capacity of up to 2.5GW.
Baltica 3 and Baltica 2 will have capacities of approximately 1GW and 1.5GW, respectively. The projects qualify for inclusion in Poland’s 2021 offshore wind allocation round.
Baltica 3 is the most advanced of the two projects and will come online in 2026.
A spokesperson for Ørsted said it will subscribe for new shares for 50% of the total share capital in PGE’s two offshore wind projects.
The subscription price for the newly issued shares in the two offshore wind facilities is said to be equivalent to $177m (zl657m).
Completion of the deal is subject to regulatory approval and expected to take place in the first quarter of this year.
Ørsted and PGE say they have established a framework that enables both parties to effectively integrate and leverage strengths and expertise from both sides.
Ørsted also aims to significantly expand its on-the-ground presence in Poland through the JV.
Ørsted chief commercial officer and deputy group CEO Martin Neubert said: “Poland is emerging as the front runner in offshore wind in the Baltic Sea and we are very excited to enter the Polish market with this joint venture with PGE.
“This transaction brings together Ørsted’s unparalleled track record in developing and constructing large-scale offshore wind farms with PGE’s extensive knowledge of and experience in the Polish energy market and its regulatory framework.”