France – France has secured approval from the European Commission for a groundbreaking €4.12 billion scheme designed to catapult the deployment of renewable offshore wind energy.
Under the State aid Temporary Crisis and Transition Framework, the French scheme focuses on supporting the construction and operation of two floating offshore wind farms in the golfe du Lion. These wind farms, among the first of their kind in France, are anticipated to boast individual capacities ranging from 230 to 280 MW, collectively generating an impressive 1.1 TWh of renewable electricity annually.
The scheme, spanning a 20-year period, adopts a two-way Contract for Difference (CfD) structure. The aid will be delivered as a monthly variable premium, calculated by comparing a reference price established during the beneficiary’s tender offer (“pay as bid”) with the prevailing market price for electricity. This innovative approach ensures a dynamic response to market fluctuations, promoting efficiency and adaptability.
Beneficiaries of the scheme, to be designated in 2024 through a transparent bidding process, will play a pivotal role in steering France’s offshore wind energy landscape. The competitive nature of the bidding process aligns with the Commission’s criteria for open, clear, transparent, and non-discriminatory selection.
Green transition
The European Commission’s approval is rooted in the alignment of the French scheme with the Temporary Crisis and Transition Framework, ensuring adherence to crucial conditions. These include the establishment of a clear budget, determination of aid through competitive bidding, and disbursement before the end of 2025.
The Commission’s endorsement signifies that the French scheme is not only necessary but also appropriate and proportionate to expedite the green transition. Positioned within the broader context of the REPower EU Plan and the Green Deal Industrial Plan, this initiative is in line with Article 107(3)(c) TFEU, fostering economic activities pivotal to sustainable development.
