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European Union

European Commission Approves €4.12 Billion French Scheme for Renewable Offshore Wind Energy

Strategic Insights

— 2 min read

The European Commission has greenlit a €4.12 billion French scheme to accelerate the rollout of renewable offshore wind energy, as part of the country's efforts to transition to a net-zero economy. This move aligns with the EU's Green Deal Industrial Plan and aims to reduce fuel dependencies. The scheme will support the construction and operation of two floating offshore wind farms in the Golfe du Lion region, with each farm expected to have a capacity of 230 to 280 MW and generate 1.1 TWh of renewable electricity per year.

Key Takeaways:

  • The €4.12 billion scheme will be granted over 20 years to support the development of two floating offshore wind farms in the Golfe du Lion region.
  • Each farm will have a capacity of 230 to 280 MW and generate 1.1 TWh of renewable electricity per year.
  • The scheme will be open to two beneficiaries, to be designated in 2024 and selected through a transparent and non-discriminatory bidding process.
  • The aid will take the form of a monthly variable premium under a two-way contract for difference, which will be calculated by comparing a reference price and the market price for electricity.
  • The Commission found that the French scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework, including open, clear, transparent, and non-discriminatory competitive bidding.
  • The scheme is necessary, appropriate, and proportionate to accelerate the green transition and facilitate the development of certain economic activities.

Statistics:

  • €4.12 billion: The total amount of funding allocated to the French scheme.
  • 20 years: The duration of the scheme.
  • 230-280 MW: The expected capacity of each wind farm.
  • 1.1 TWh: The amount of renewable electricity to be generated per year.
  • €280,000-£335,000 and €2.25 million: The maximum aid amounts for companies in the agriculture, fisheries, and aquaculture sectors, and all other sectors, respectively.
  • 2024: The year by which the beneficiaries are to be designated.
  • 2030: The year by which the green transition is expected to be achieved.
  • 40%: The share of the investment costs that will be capped for small and medium-sized enterprises.

Sources:

  • European Commission, "Press release: Commission approves €4.12 billion French scheme to support renewable offshore wind energy," Dec. 7.
  • European Commission, "Temporary Crisis and Transition Framework," as amended on November 20, 2023.
  • European Commission, "Support possibilities for high energy prices," November 20, 2023.
  • European Commission, "Temporary Crisis and Transition Framework," as amended on November 20, 2023.
  • European Commission, "State aid register," as of December 7.

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