Hogan Lovells advises on the development and EUR 4.4 billion financing of Baltic Power offshore wind project in Poland

The debt financing for Baltic Power, which was signed on 19 September 2023, is being provided by 25 international and local commercial banks, multiple Export Credit Agencies (ECAs) and multi-lateral financing institutions.

The Baltic Power project is located in the Baltic Sea approximately 22 kilometres off the Polish coast and has obtained all environmental approvals and major construction permits. Once operational, which is estimated in the latter half on 2026, Baltic Power will be amongst the largest offshore wind projects globally. It is expected to provide clean energy to over 1.5 million Polish households and will play an important role in helping Poland achieve its target of up to 11 GW of offshore wind to be constructed by 2040. 

Baltic Power is part of the first 5.9 GW round of offshore wind projects in Poland and obtained a grid connection and a 25-year fixed CfD offtake arrangement. The CfD offtake arrangement is Euro-pegged and includes an inflation indexation mechanism. 

The international Hogan Lovells team was led by partners Carla Luh and Christian Knütel. Key team members of the team included Kathy Chang, Tobias Ulbrich and Benedikt Straubinger. Law firm SSW provided advice in relation to Polish law. Green Giraffe and Bank Pekao acted as financial advisers. 

Carla and Christian said: “We are delighted to have supported our client on this true landmark transaction. Achieving financing close of such a large project in a new market in a challenging market environment with a new regulatory regime is an accomplishment on which we are very proud of and which is the result of a true team effort with the sponsors, the project team, the lenders and every adviser who played a role in this. The role of offshore wind in the Polish and more broadly the global energy transition cannot be understated.”

With a high number of various global projects in the infrastructure and energy sector, such as in Poland, Germany and Asia, Hogan Lovells is a worldwide leading advisor to companies in this market.

Hogan Lovells team for Baltic Power Project

Germany

Dr. Carla Luh (Partner), Kathy Chang (Senior Associate), Bianca Engelmann (Partner), Lennart Lautenschlager (Counsel), Tobias Ulbrich, Benedikt Straubinger (Associates), Amy Wienke, Dr Antonia Wolf (Senior Associates), Marius Fischer, (Associate);

Dr. Christian Knütel (Partner), Dr. Anna Hillebrecht, David Gherdane (Senior Associates), Dr. Susanne Reil, Julian Herr, Fabian Paehr (Associates);

UK

Erika Hubert (Senior Associate);

Netherlands

Wouter Jongen (Partner), Jan-Willem Boer (Senior Associate);

USA

Edith Webster (Partner).