The European Commission has approved a €4bn French scheme to support the roll out of offshore wind, in line with the Green Deal Industrial Plan.
The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 and amended on 20 November 2023, to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.
France notified to the Commission, under the Temporary Crisis and Transition Framework, a €4.12bn scheme to support the construction and the operation of two floating offshore wind farms in the golfe du Lion.
The measure will run for a period of 20 years.
The two sites supported by the measure will be among the first commercial projects of this kind in France.
One is expected to have a capacity of 230MW and the other will have a capacity of 280MW.
This measure will be open to two beneficiaries, to be designated in 2024 and selected through a transparent and non-discriminatory bidding process.
Under this scheme, the aid will take the form of a monthly 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), as well as by 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 the French authorities.
The Commission found that the French scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework.
The Commission concluded the French scheme is “necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the REPower EU Plan and the Green Deal Industrial Plan, in line with Article 107(3)(c) TFEU and the conditions set out in the Temporary Crisis and Transition Framework”.
On this basis, the Commission approved the aid measure under EU State aid rules.