The European Commission has approved France's ambitious €11 billion scheme aimed at bolstering offshore wind energy projects. This approval comes under the State aid Temporary Crisis and Transition Framework (TCTF), designed to support green energy transitions, adopted on March 9, 2023.
Under the 20-year plan, France will subsidize the construction and operation of two bottom-fixed offshore wind farms: one in the South Atlantic zone and another in the Centre Manche 2 zone in Normandy. The South Atlantic wind farm is projected to have a capacity ranging from 1000 to 1200 MW, generating a minimum of 3.9 TWh of renewable electricity annually. Meanwhile, the Normandy wind farm aims for a capacity between 1400 and 1600 MW, producing at least 6.1 TWh of renewable electricity per year.
The scheme will utilize a variable premium model over a two-way contract for difference (CfD), where subsidies are calculated by comparing a reference price from the beneficiary's tender bid (‘pay as bid') against prevailing market electricity prices.
According to the Commission, the French initiative meets the TCTF's criteria by ensuring aid is allocated within a defined volume and budget, employing a transparent competitive bidding process, and stipulating aid disbursement before December 31, 2025.
