The Canadian investor Northland Power became particularly well known in Poland after the information about establishing cooperation with the Polish energy champion - PKN Orlen. Northland Power has 33 years of experience in the development of energy projects, including renewable energy sources. In the next article from the "Who's who in Polish offshore" column, we ask the company about the progress in the development of offshore projects in Poland and the nearest plans.
Northland Power, based in Toronto,
specializes in the development of energy infrastructure in Asia,
Europe, Latin America and North America. Investments include, in
particular, the natural gas sector and renewable energy sources such
as wind and solar. Founded in 1987, the company currently owns or has
interests in operating stage assets with a total capacity in 3.2 GW
(net 2.8 GW) and significant early to mid-stage assets comprising
approximately 4-5 GW of potential generating capacity.
In offshore wind, Canadian has
assets totaling 1,184 MW plus offshore wind assets under development
totaling 2,244 MW. Northland Power is ranked among the top 10
offshore wind companies in the world. It operates as a developer,
owner and operator of offshore wind farms operating in Europe as well
as projects currently under development in Asia - Gemini (600 MW),
Nordsee One (332 MW) and Deutsche Bucht (252 MW).
A year ago, in January, we learned
that the Canadian company will become PKN Orlen's business partner in
the implementation of the offshore wind farm project in the Baltic
Sea. The cooperation assumes preparation, construction and operation
of an offshore wind farm with a capacity of up to 1.2 GW. Northland
Power has taken a 49 percent stake in the project. Following the
joint venture agreement, Baltic Power's direct shareholder is NP
Baltic Wind B.V., based in the Netherlands, which remains a 100
percent indirect subsidiary of Northland Power. NP Baltic Wind B.V.
is a special purpose establishment created to implement the project
together with PKN Orlen. In February 2021, PKN Orlen and the Dutch NP
Baltic Wind filed a motion with the Office of Competition and
Consumer Protection (UOKiK) to establish a joint venture on the basis
of the Baltic Power subsidiary.
Source: Northland Power
The construction of the offshore
wind farm is planned to start in 2023/2024 and its commissioning in
2026. An infrastructure consisting of approximately 70 wind turbines,
each approximately 270 meters high, depending on the chosen
technology, will be built on an area of over 130 km2. In June 2021,
the Energy Regulatory Office granted the Baltic Power project support
in the form of a differential contract, valid for 25 years. Under
this contract, the investor gains the right to cover the negative
balance of the electricity produced offshore and fed into the grid.
We also ask Northland Power about
its work on the project. The Canadian company in its comment for
MarinePoland.com indicates that last year it entered into partnership
with PKN Orlen in order to build one of the first offshore wind farms
in Poland.
- Our 1,200 MW Baltic Power project
is a mid-stage development. It received its Environmental Impact
Assessment in the fall of 2021 and a Contract for Differences
contract from the Polish government in June 2021. Construction
activities are scheduled to start in 2023 with commercial operations
expected in 2026. Since last September Baltic Power opened its office
in Warsaw where teams from Northland and PKN Orlen can work together
- the Canadians explain.
What are Northland Power's immediate plans in the offshore wind sector in Poland?
- Baltic Power remains our top
priority. As a global player and one of the biggest operators in the
North Sea, we are tracking the development of the offshore sector in
Poland... and beyond. Baltic Power is a platform from which Northland
can expand its presence in Poland and the wider Baltic Region -
informs the company.
To what extent has the company
managed to involve Polish companies in the development of the
offshore farm in the Baltic Sea? Northland Power explains that Baltic
Power conducted market research in 2020 to understand and evaluate
the supply chain in Poland.
- We have also undertaken two market wide supplier days in 2020 with the last undertaken having taken place the week of 29 November 2021. Despite the covid situation, almost 600 representatives from 369 companies and institutions attended this meeting. It was a real success! Building a strong supply chain is among the crucial steps leading up to the launch of this project, which is of strategic importance to the entire power sector. Local content/support for supply chain development in Poland is strongly encouraged as part of the Tier One ongoing procurement process - Northland Power explained in response.
Baltic Power and Northland are also signatories to the Polish Offshore Wind Sector Deal, which aims to support supply chain development and innovation.