EU-approves-E11-billion-French-offshore-wind-scheme

EU approves €11-billion French offshore wind scheme

France

BRUSSELS, August 7, 2025 – The European Commission has approved an EUR 11-billion scheme proposed by France to support the development of three floating offshore wind farms under the Clean Industrial Deal, the Commission announced on Tuesday.

The scheme will run for 20 years and serve to fund one offshore wind farm off the coast of Southern Brittany and two in the Mediterranean Sea. The farms have a projected capacity of 500 MW and generation of 2.2 TWh per year, equivalent to the annual electricity consumption of approximately 450,000 households.

Aid will be granted via a competitive bidding process, with resilience in turbine supply chains considered a prequalification and award criterion. Beneficiaries will receive monthly variable premiums through a two-way contract for difference model, based on the difference between the bid-based reference price and market electricity prices.

When market prices are below the reference price, the beneficiaries will be entitled to payments equal to the difference between the two. Conversely, when market prices are above the reference price, the beneficiary will have to pay the difference to the French authorities.

The scheme aligns with the Clean Industrial Deal State Aid Framework (CISAF) and Article 107(3)(c) of the Treaty on the Functioning of the EU, providing proportionate and necessary support for accelerating the clean energy transition.

CISAF aims to support renewable energy, clean fuels, industrial decarbonisation and clean tech manufacturing in the EU. Member states can provide aid under the programme until December 31, 2025.

In its review of the French proposal, the Commission concluded that the scheme is necessary to accelerate the country’s transition towards a net-zero economy and support the development of economic activities that are instrumental to that objective.