The European Commission Approves €11 Billion French Offshore Wind Energy Program
The European Commission has given the green light to a €11 billion (US$12.7 billion) French program aimed at supporting offshore wind energy and hastening the shift towards clean energy. This approval comes as a significant step towards achieving the EU’s renewable energy targets for 2030 and transitioning to a net-zero economy.
The program will focus on the construction and operation of three floating offshore wind farms. One will be located off the coast of Southern Brittany, while the other two will be situated in the Mediterranean Sea. Each wind farm is projected to have a capacity of approximately 500 MW, generating around 2.2 TWh of electricity annually, equivalent to the power consumption of 450,000 French households.
Financial assistance under this program will be allocated through a competitive bidding process, with one beneficiary selected per offshore zone. The aid will be structured as a monthly variable premium within a two-way contract for difference (CfD) framework. This mechanism will involve comparing a reference price, set during the bidding process, to the market price of electricity. Beneficiaries will receive payments when the market price falls below the reference price and will make payments to the French authorities when the market price exceeds the reference price.
The European Commission’s review of the aid package highlighted the inclusion of resilience as a prequalification and award criterion in the tender process. This is intended to diversify the supply chains of wind turbine components and reduce reliance on imports from China, enhancing the program’s sustainability and long-term viability.
Overall, the Commission determined that the French offshore wind energy scheme meets the necessary conditions for approval, providing direct price support through a transparent and competitive CfD mechanism. Safeguards have been put in place to ensure market efficiency and prevent overcompensation of producers during periods of negative market prices.
In conclusion, the Commission affirmed that the French program is essential, suitable, and proportional in accelerating the transition to a net-zero economy and fostering the growth of key economic sectors. This approval signifies a significant milestone in France’s renewable energy landscape and contributes towards the EU’s broader clean energy goals.