Revenue Secured

On 15 June 2021, Poland's Energy Regulatory Office (URE) awarded a 25-year contract for difference (CfD) to the Baltic Power offshore wind project, securing long-term revenue support for the up-to-1,200 MW farm jointly developed by Northland Power and PKN ORLEN. The CfD is set at a strike price of PLN 319.60/MWh, indexed annually to Poland's average consumer price index. Under the mechanism — described in Polish law as the "right to cover the negative balance" — the project receives payments compensating any shortfall between the market price of electricity sold and the indexed strike price, providing revenue certainty over the 25-year support period. The award was made under the Polish Offshore Wind Act passed in early 2021, which earmarked an initial 5.9 GW phase of administratively-supported offshore wind capacity. Baltic Power was among the first-phase recipients. The CfD was conditional on review and final approval from Polish authorities and the European Commission's State Aid review, which were subsequently obtained. This milestone provided the revenue-stability anchor required for project financing, FID in late 2023 and the project finance syndicate of 25 international institutions (including the EIB) that funded construction.