Poland launches $5.4bn loan scheme for offshore wind funding

The Polish development bank has revealed that the country would launch a nearly €5bn ($5.46bn) programme to provide loans for the construction of offshore wind farms in the Baltic Sea.

Bank Gospodarstwa Krajowego (BGK) said the programme was financed from the European Union’s recovery funds and will grant loans on market terms.

This is not considered to be public aid and will therefore not require additional notification to the European Commission. Projects with a minimum size of 300MW of installed capacity will be eligible for loans.

Loan agreements to finance offshore wind farms can be concluded until August 31, 2026, with a maximum repayment period of up to 2053.

“Offshore wind energy will be an important element of our country’s energy mix. We have billions of [euros] for its development. We will use the opportunity for a development leap in the Polish economy together with businesses, and ensure energy security for millions of our citizens,” Jacek Bartmiński, Poland’s deputy minister of state assets.

According to BGK research, the construction of wind farms will have a positive impact on the development of the labour market, creating up to 100,000 new jobs.

As for some of the most prominent offshore wind targets, Polish state-controlled utility PGE and Orsted as well as refiner Orlen with Northland Power plan to build 5.9GW of offshore wind capacity in the country by 2030.