The European Commission has approved the almost €11bn French government scheme to support the deployment of offshore wind.
The was approved under the State aid Temporary Crisis and Transition Framework (‘TCTF’) adopted by the Commission on 9 March 2023.
Under the 20-year scheme, the French government will support 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 expected to have a capacity of 1000 to 1200 MW and to generate at least 3,9 TWh of renewable electricity per year. The Normandy wind farm is expected to have a capacity of 1400 to 1600 MW and to generate at least 6.1TWh of renewable electricity per year.
The scheme will operate as a month variable premium under a two-way contract for difference (CfD), which will be calculated by comparing a reference price, determined in the tender offer of the beneficiary (‘pay as bid’), to the market price for electricity.
The Commission found that the French scheme is in line with the conditions set out in the TCTF.
First, the aid will be granted on the basis of a scheme with an estimated volume and budget. Second, the aid amount will be determined through an open, clear, transparent, and non-discriminatory competitive bidding process; and third, the aid will be granted before 31 December 2025.