By Robb M. Stewart

Northland Power Inc. said Friday that it agreed with PKN Orlen SA to buy a 49% interest in the Baltic Power offshore wind project in the Baltic Sea.

Once complete, Baltic Power will substantially increase Northland's total gross offshore wind capacity in Europe up to about 2,400 megawatts, or 1,500 MW net, the power producer said.

On the market in Poland:

"Energy demand in Poland is expected to rise over the coming decades as the country continues its economic growth," Northland said.

Poland, a member state of the European Union, is the fifth largest country in European Union and the biggest market in Central and Eastern Europe with a population of about 40 million people. Northland said Poland's draft energy policy foresees the need to add 10 to 12 GW of offshore wind capacity and an additional 15 GW of solar capacity by 2040 and the country's recent passing of its Offshore Wind Act paves the way for Poland to develop offshore wind. This will result in a significant amount of investment into renewable energy generation.

On the acquisition:

Northland said Baltic Power is a natural addition to its offshore wind portfolio, providing a new market to "further enhance the geographic and regulatory diversity in its portfolio and cashflows."

Currently, Northland has controlling interests in three operational offshore wind facilities in the North Sea, Gemini, Nordsee One and Deutsche Bucht farms with a total combined gross capacity of approximately 1,200 MW, or 890 MW net to Northland.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

01-29-21 1047ET