- The scheme involves €11 billion to support offshore wind energy.
- It will run for 20 years, supporting three floating wind farms.
- Each farm will have a capacity of 500 MW, generating 2.2 TWh annually.
- Aid is granted via a two-way CfD, ensuring market stability.
Overview
The European Commission has approved an €11 billion French scheme to support offshore wind energy, aligning with the Clean Industrial Deal's objectives. This initiative aims to aid the transition towards a net-zero economy and meet the EU's 2030 renewable energy targets.
Project Details
The scheme will run for 20 years, focusing on the construction and operation of three floating offshore wind farms. These farms will be located off the coast of Southern Brittany and in the Mediterranean Sea, each with a capacity of approximately 500 MW, generating around 2.2 TWh annually, equivalent to the consumption of 450,000 French households.
Implementation
A transparent and non-discriminatory bidding process will select one beneficiary per offshore zone. The aid will be provided through a two-way contract for difference (CfD), calculated by comparing a reference price to the market price for electricity. This mechanism ensures that beneficiaries receive payments when market prices fall below the reference price and pay the difference when prices exceed it.
Strategic Importance
The scheme includes resilience as a tender criterion to diversify supply chains and reduce dependency on imports, particularly from China. The Commission concluded that the scheme is necessary, appropriate, and proportionate for accelerating the net-zero transition and supporting key economic activities under the Clean Industrial Deal.
