The European Commission has approved, under EU State aid rules, a French measure to support the first commercial-scale floating offshore wind farm in the country.
The €2.08bn measure will contribute to achieving France’s energy and environmental targets, as well as the objectives relating to the EU’s Offshore Renewable Energy Strategy and the European Green Deal.
France notified to the Commission its intention to support the construction and the operation of the project off the coast of south Brittany.
The aid measure will run for a period of 20 years starting of the operation of the wind farm in 2028.
Floating offshore wind technology is at an initial stage in France; until now only small pilot projects have been developed.
The floating offshore wind farm supported by the measure will be the first commercial project of this kind in France.
It is expected to have a capacity of 230MW to 270MW, and to generate 1TWh of renewable electricity per year for a period of 35 years.
The beneficiary of this measure will be selected through a transparent and non-discriminatory bidding process, where bidders will compete mainly on the basis of the amount of aid per MW of installed capacity.
The beneficiary is planned to be designated in the second semester of 2023.
The aid will be granted in the form of a monthly variable premium under the model of a two-way Contract for Difference.
The variable premium will be calculated by comparing a reference price, determined in the tender offer of the beneficiary (“pay as bid”), and the market price for electricity.
When the market price is below the reference price, the beneficiary will be entitled to receive payments equal to the difference between the two prices.
However, when the market price is above the reference price, the beneficiary will have to pay the difference between the two prices to French authorities.
The measure will help France meet its target of producing 33% of its energy needs from renewable sources by 2030.
The scheme is expected to lead to the reduction of greenhouse gas emissions by 430.000 tonnes of carbon dioxide per year.