PGE Group announced that the European Investment Bank (EIB) has approved the financing for Baltica offshore wind farm project, being developed by PGE and its Danish partner Ørsted.

The EIB is committed to providing a total financing package of up to €1.4bn, which will support the construction of PGE’s first offshore wind farm in the Baltic Sea.

The 2.5GW Baltica project will be developed in two different stages, the 1.5GW Baltica 2 that is planned to be commissioned in 2027, and the 1GW Baltica 3 by the end of this decade.

Under the project finance formula, PGE will disburse one tranche amounting up to €350m for each stage, based on guarantees from financial institutions, banks or credit agencies.

PGE Polska Grupa Energetyczna management board president Wojciech Dąbrowski said: “Obtaining a preliminary credit decision from the European Investment Bank is a significant step for financing the construction of the largest offshore wind farm in the Baltic Sea.

“The presence of a recognized and experienced international financial institution in financing the project is a signal that we are a reliable partner for financial institutions, the projects we run meet the highest standards, and the interest of the financial sector in cooperation with PGE in the field of offshore wind energy is really high.”

EIB said that advancing energy transformation is its priority, and has established the REPowerEU initiative, together with the European Commission (EC).

The financing for the Baltica project will help European Union (EU) states stay independent from Russian energy resources and advance the energy sector towards renewable energy, said EIB.

EIB vice-president Teresa Czerwińska said: “Diversification of energy sources and independence from fossil fuels are key tasks for Poland and the European Union, and Baltica Offshore Wind Farm is a very important project implementing these goals.

“Supporting energy transition is a priority for the EIB as it accelerates green economic development and supports labour market.”