Polish utility and renewable energy company Polenergia and Lithuania-based Modus Energy, also operating in the renewable energy sector, have agreed on the key terms of an agreement which will see the two parties establishing a joint venture (JV) to develop offshore wind projects in the Baltic Sea.
According to the Polish company’s report to the investors, the offshore wind projects “are going to the built and will operate with the use of the associated infrastructure at the Lithuanian territory of the Baltic Sea”.
The key terms of the JV agreement Polenergia and Modus Energy, operating under the Green Genius brand, have agreed on include the planned schedule of the projects, among other things.
The companies had been in exclusive negotiations under an exclusivity right granted to Polenergia by Green Genius until 31 December 2021, which is now prolonged until 15 February 2022 for the purpose of completing work on the documents pertaining to the establishment of the JV. The establishment of the joint venture itself depends on, inter alia, procurement of the required corporate consents by Polenergia, according to the update from the company.
Polenegia is currently developing two offshore wind farms in Poland, Bałtyk II and Bałtyk III, together with Equinor.
The two projects, with a combined potential capacity of 1,440 MW, were awarded Contracts for Difference (CfDs) in May last year under the first phase of Poland’s offshore wind development scheme.
Polenergia is also developing a third project, OWF Bałtyk I, in the country. The 1,560 MW project has a valid location permit and a connection agreement obtained from the transmission system operator in January 2021. Currently, the environmental research is underway for the project’s environmental impact assessment.
Modus Group, an international group of companies, was developing renewable energy projects under two separate brands – Modus Energy and Green Genius – until January 2020, when the Group decided to concentrate its renewable energy operations under the Green Genius name, saying the decision was made while preparing for the stage of rapid international growth.