EC endorses €10.8 French offshore wind energy scheme
The European Commission (EC) has granted approval for a monumental €10.82 billion scheme to support France’s ambitious offshore wind energy projects, marking a significant stride towards achieving a net-zero economy. This decision aligns with the State aid Temporary Crisis and Transition Framework (TCTF), reflecting a committed effort to foster sustainable energy solutions.
This funding initiative, notified under the TCTF and meticulously designed to run for 20 years, aims to propel the construction and operational phases of two pivotal offshore wind farms—one in the South Atlantic zone and another in the Centre Manche 2 zone in Normandy. These projects are poised to collectively generate substantial renewable electricity, with the South Atlantic farm expected to produce between 3.9 to 6.1 terawatt-hours (TWh) annually.
The scheme’s financial structure is notably innovative, employing a monthly variable premium under a two-way contract for difference (CfD). This model ensures financial stability for the project beneficiaries by adjusting payments based on the difference between the market price for electricity and a pre-determined reference price from the bidding process.
The European Commission’s approval underscores the scheme’s alignment with stringent criteria aimed at promoting fair competition and transparency. Specifically, the aid will be distributed based on a competitive bidding process, which is crucial for maintaining the integrity and efficacy of financial supports in line with the TCTF.
This initiative is a part of a broader strategy introduced by the Commission in March 2023, which aims to accelerate the green transition across key economic sectors. The TCTF includes provisions for boosting renewable energy deployment, decarbonizing industrial processes, and supporting the manufacture of strategic equipment essential for the energy transition.
The approval of this substantial funding for offshore wind projects in France is a pivotal moment in Europe’s energy transition. It exemplifies a robust commitment to renewable energy that not only supports France’s energy goals but also sets a precedent for other nations striving for a sustainable future.