PGE, Ørsted to re-tender Baltica 2 offshore substation topsides

PGE Polska Grupa Energetyczna and Ørsted have removed the tender lot for the Baltica 2 offshore substation topsides from the call launched in September last year and will now consider how to re-tender it while they continue the process for the other lot under the existing tender.

Ørsted, on behalf of the joint venture with PGE, opened a qualification period in August 2021 and launched the tender for Baltica 3 and Baltica 2 offshore substation (OSS) topsides the following month.

For the Baltica 2 offshore wind farm, the developer was seeking contractors for the delivery of between four and five offshore substation topsides and module support frames (MSFs) under an EPC contracting model. Under the lot for the Baltica 3 offshore wind farm, for which the tender process resumes under the existing call, the contract will include the same for three to four offshore substation topsides and MSFs.

However, after receiving the invitation to tender (ITT) package, two out of five tenderers “did not believe they could hand in a competitive bid” and decided not to submit a First Tender for both lots, according to Ørsted’s latest contract notice.

Following this, and after receiving the First Tenders and holding clarification meetings, the joint venture found that there was no sufficient competition to continue the tender process for both lots and decided to cancel the tender process for the lot related to Baltica 2, Lot B.

“The Contracting Entities has decided to cancel Lot B, and not Lot A, based on the sourcing schedule and FID date for each Lots. The Contracting Entities will in the coming time consider how to re-tender for Baltica 2”, the notice on the tender update reads.

The final investment decisions (FIDs) for the two projects will be made after they obtain building permits, with work on obtaining the permits expected to start this year.

Both Baltica 2 and Baltica 3 have received location decisions (PSzW), environmental decisions for the maritime part, transmission network connection agreements with the operator, and have secured Contracts for Difference (CfDs) in the first round of awards in Poland, reserved for the most advanced projects.

The closing of financing for the investment in Baltica 3 is planned for 2023 with Baltica 2 following suit in 2024.

Since the beginning of this year, Ørsted has launched a few tender processes for Baltica 3 and Baltica 2, including that for transport and installation of both foundations and offshore substations in the Polish Baltic Sea waters, and the projects’ electrical infrastructure on land.

Baltica 3, which has an installed capacity of 1,045 MW, is expected to deliver first power in 2026, while Baltica 2, with a capacity of 1,498 MW, will start delivering power the following year.