EU approves major $11.6 billion investment in French offshore wind

The European Commission has approved an $11.64 billion (€10.82 billion) French programme to support the deployment of offshore wind power, helping to transition to a net-zero emissions economy.

The state aid scheme will be in force for 20 years. In particular, the measure will support the construction and operation of two permanent offshore wind farms – one in the South Atlantic zone and the other in the Centre Manche 2 zone in Normandy.

The South Atlantic wind farm is expected to have a capacity of 1,000 to 1,200 MW and generate at least 3.9 TWh of renewable electricity per year.

The Normandy wind farm is expected to have a capacity of 1,400 to 1,600 MW and generate at least 6.1 TWh of renewable electricity per year.

The aid will be granted on the basis of transparent and non-discriminatory tender procedures that will be organised with the aim of selecting a single beneficiary in each offshore zone.

Under this scheme, aid will take the form of a monthly variable premium under a bilateral Contract for Difference (CfD), which will be calculated by comparing the reference price set in the beneficiary’s tender bid (payment according to bid) with the market price of electricity.

If the market price is lower than the reference price, beneficiaries will be entitled to receive payments equal to the difference between the two prices.

However, if the market price is higher than the reference price, the beneficiary will have to pay the difference between the two prices to the French authorities.

According to the announcement of the European Commission, the aid will be paid by 31 December 2025.

“This €10.82 billion programme will enable France to deploy offshore wind capacity more quickly, in line with the EU Offshore Renewables Strategy. It will also help France reduce its dependence on Russian fossil fuels, while ensuring that any potential distortions of competition are kept to a minimum,” said Margrethe Vestager, Executive Vice President for Competition Policy.