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The European Commission has greenlit a €10.82 billion initiative by France to bolster offshore wind energy, a move that aligns with the EU’s commitment to a net-zero economy. The approval came under the State aid Temporary Crisis and Transition Framework (TCTF), established to expedite support measures crucial for the green transition.
France’s ambitious scheme, set to run for 20 years, will facilitate the construction and operation of two bottom-fixed offshore wind farms. These projects include one in the South Atlantic zone, expected to generate 3.9 TWh of renewable electricity annually with a capacity of 1000 to 1200 MW, and another in the Centre Manche 2 zone in Normandy, projected to produce 6.1 TWh per year with a capacity of 1400 to 1600 MW.
The aid will be allocated through transparent, competitive bidding processes, selecting one beneficiary per offshore zone. The financial support will take the form of a monthly variable premium under a two-way contract for difference (CfD), where beneficiaries will receive payments when market prices fall below the reference price and vice versa.
The Commission found the French scheme compliant with TCTF conditions, highlighting its open, clear, and non-discriminatory bidding process and its timely aid distribution, scheduled before December 31, 2025. The measure is seen as necessary, appropriate, and proportionate, accelerating the green transition and facilitating economic activities critical to the Green Deal Industrial Plan.
This initiative is part of the broader TCTF, adopted on March 9, 2023, to support measures in key sectors for the net-zero economy transition. The framework includes provisions for renewable energy rollout, industrial decarbonisation, and investments in strategic sectors.
With the approved scheme, France aims to expedite offshore wind energy deployment, reduce dependency on Russian fossil fuels, and ensure minimal competition distortions. Margrethe Vestager, Executive Vice-President in charge of competition policy, emphasized the scheme’s alignment with the EU Strategy on Offshore Renewable Energy and its potential to enhance France’s energy independence.
This significant investment in offshore wind energy underscores the European Union’s commitment to sustainable development and the green transition. The successful implementation of these projects is expected to boost renewable energy capacity, foster economic resilience, and contribute to long-term environmental stewardship.
