PGE aims to build Baltic offshore wind farms on its own under updated 2035 strategy

From partnership to self-delivered Baltic projects

PGE is building its first offshore wind farm, the roughly 1.5 GW Baltica 2, together with Denmark's Ørsted. The strategy states that the competences gained on these projects will allow further developments under new equal-partnership models, and that PGE ultimately aims to be capable of delivering and operating subsequent Baltic offshore wind projects independently.

The direction ties in with a decision announced the same day: PGE Baltica, the group's offshore wind company, has moved its headquarters from Warsaw to Gdańsk. Its Baltica 2, Baltica 3 and Baltica 9 projects are to add 3.8 GW by 2032, with Baltica 1 and Baltica 7 also in the portfolio. The group is adopting a selective investment policy focused on projects with the highest value potential, with revenues more strongly secured through regulatory mechanisms and contracts.

- Today success is determined not only by the scale of investment or growth in generating capacity, but also by profitability, maximum use of the potential of renewable energy and resilience to changing market and geopolitical conditions. That is why we are focusing on efficiency, developing new business areas and concentrating on projects that strengthen Poland's energy security, support the economy and Polish companies, and build value for shareholders - said Dariusz Lubera, President of the Management Board of PGE Polska Grupa Energetyczna.

More than 65% local content

For Polish shipyards, ports and suppliers, the key commitment is that local content across the life cycle of the group's investments will exceed 65%. The strategy links this to supply chain resilience: the more components and services sourced domestically, the lower the risk of disruption. In Pomerania that chain is already taking shape, from the T5 installation terminal at the Port of Gdańsk and the operations and maintenance base in Ustka to companies producing secondary steel for the Baltica 2 foundations.

Renewable projects with PGE's participation, offshore and onshore, are to deliver 28 TWh a year to the system, 18 TWh of it attributable to PGE's share.

Storage, gas and grids to complement wind

To make full use of offshore power, PGE plans complementary flexible capacity: 18 GWh of energy storage and 9.6 GW of gas-fired capacity producing electricity and combined heat and power. These are to provide stable supply as well as balancing and peak capacity in a system with a growing share of renewables.

Of the PLN 210 billion, around PLN 70 billion will go to grids and distribution, PLN 48 billion to energy transition, including gas, district heating and the study of small modular reactors, and around PLN 6 billion to new areas such as industrial zones and data centres. By 2035 PGE aims to connect 11 GW of new renewables and 12 GW of new customers to its grid. More than 70% of investments are to be remunerated through stable regulatory mechanisms such as contracts for difference, the capacity market or tariffs.

EBITDA to more than double and dividends to return

The strategy targets EBITDA growth from around PLN 13 billion in 2025 to more than PLN 30 billion in 2035, while efficiency measures are expected to deliver about PLN 18 billion of benefits compared with the previous scenario. PGE is also returning to dividends: the first payment, from 2026 profit, is planned for 2027 at a dividend yield of no more than 5%. The group maintains its target of net zero emissions from generation by 2050, with offshore wind remaining one of the pillars on that path.