Iberdrola enters Polish offshore with 50% stake in 7.3GW pipeline

Iberdrola plans to use its foothold in Poland to expand its offshore wind capacity in other Baltic Sea countries

by Heather O鈥橞rian 18 December 2020

Iberdrola already has offshore wind capacity in the German Baltic Sea, after commissioning the 350MW Wikinger wind farm in late 2017

Iberdrola has agreed to acquire 50% of聽 the developer Sea Wind, getting a foothold in Poland鈥檚 nascent offshore wind market with access to a potential 7.3GW in projects in the Polish Baltic Sea.听

The Spanish energy giant. explained the deal would allow it to position itself in the early stage of development of Polish offshore wind, where it sees 鈥渟ignificant growth potential鈥.

With the transaction, it is also promoting plans to create an offshore wind hub in the Baltic Sea, which would act 鈥渁s the epicentre of offshore services and local content鈥 for its projects in Germany, Poland and Sweden.听

Sea Wind is developing seven, early-stage offshore projects in the Baltic Sea. It previously worked with Iberdrola to develop the 476MW Baltic Eagle wind farm off the German coast, before selling it to the Spanish giant in 2017. Iberdrola expects to commission the project in 2023.听 聽

Iberdrola says the new partnership could be open to Polish partners.

The acquisition comes after its聽 talks with Polish energy company Enea to develop up to 3.3GW of Polish offshore wind projects broke down in September.听

Iberdrola already has offshore wind capacity in the German Baltic Sea, after commissioning the 350MW Wikinger wind farm in late 2017. In Sweden, it reached an agreement with Svea Vind Offshore this June that will allow it to take majority stakes in the future in up to 9GW of offshore wind capacity.听

The Spanish giant has been on a spending spree this year, including renewable energy聽acquisitions in聽the UK,听France,听Australia,听Sweden,听Japan听补苍诲听Brazil.

Meanwhile, Poland鈥檚 parliament this week began examination of the country鈥檚 Offshore Wind Act, after the Council of Ministers approved the draft legislation at the end of November. Final parliamentary approval is expected by end 2020 or early 2021 at the latest.听

That legislation envisages developers looking to secure offtake agreements, similar to the UK鈥檚 contract for difference model, in two phases. Up to 5.9GW in projects are to be selected by Poland鈥檚 energy regulator by the end of June 2021, before a further 5GW in capacity is auctioned in two tenders in 2025 and 2027. Poland鈥檚 government targets offshore wind capacity rising from zero today to 5.9GW in 2030 and 8-11GW by 2040.