You are here
Home | News Feed | European Commission Greenlights €10.82 Billion French Offshore Wind Energy Scheme

European Commission Greenlights €10.82 Billion French Offshore Wind Energy Scheme

The European Commission has approved a €10.82 billion initiative by France to boost offshore wind energy. This landmark scheme is part of the State aid Temporary Crisis and Transition Framework (TCTF), aiming to propel the region toward sustainable energy goals.

The approved French plan will span 20 years, focusing on constructing and operating two major bottom-fixed offshore wind farms. One farm will be situated in the South Atlantic zone, boasting a capacity between 1000 to 1200 MW, anticipated to produce at least 3.9 TWh of renewable electricity annually. The second farm, located in the Centre Manche 2 zone in Normandy, is expected to have a capacity of 1400 to 1600 MW, generating a minimum of 6.1 TWh of renewable electricity per year. These projects represent a significant stride in Europe’s renewable energy landscape.

The aid for these ventures will be allocated through transparent and non-discriminatory bidding processes. The framework involves a two-way contract for difference (CfD), ensuring a balanced approach to financial support. When market prices fall below the reference price, the scheme compensates the beneficiaries. Conversely, if market prices exceed the reference price, beneficiaries are required to reimburse the difference, maintaining a fair economic equilibrium.

The European Commission assessed the French scheme against the criteria set out in the TCTF, confirming its alignment with the established conditions. The approval hinges on three core principles: the aid must be granted based on a pre-determined volume and budget, it must be awarded through an open and transparent competitive bidding process, and it must be allocated before the end of 2025.

This initiative underscores the Commission’s commitment to accelerating the green transition. The French scheme is deemed necessary and proportionate, facilitating the development of essential economic activities vital to the Green Deal Industrial Plan. This decision aligns with Article 107(3)(c) of the Treaty on the Functioning of the EU, reinforcing the scheme’s legal and economic justification.

Introduced on 9 March 2023, the TCTF is designed to support sectors crucial for achieving a net-zero economy. It outlines various types of aid, including measures to expedite the deployment of renewable energy and decarbonize industrial processes. By supporting investments in renewable energy and key industrial sectors, the TCTF aims to reduce reliance on fossil fuels and promote sustainable practices across the EU.

Print Friendly, PDF & Email

“Disclaimer: “Breakbulk News & Media BV (Breakbulk.News) assumes no responsibility or liability for any errors or omissions in the content of articles published. The information and or article contained in these articles is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness…”

blank
blank
blank
blank
Top