France Unleashes €11 Billion for Floating Wind Power
New Scheme Aims to Boost Domestic Supply Chains and Green Energy Targets
France is set to significantly accelerate its clean energy transition with a massive €11 billion state aid package approved by the European Commission. This ambitious funding will back three 500MW floating offshore wind farms.
Boosting Renewable Energy and Independence
The 20-year initiative, structured under the Clean Industrial Deal State Aid Framework, is designed to help France and the wider European Union achieve their 2030 renewable energy objectives. A key focus is reducing the bloc’s dependence on imported clean technology components, particularly those sourced from China.
Project Details and Funding Mechanism
The planned wind farms will be situated off the southern Brittany coast and in two Mediterranean locations. Each facility is projected to generate approximately 2.2 terawatt-hours of electricity annually, powering roughly 450,000 French households. Funding will be distributed via a competitive tender process, with a single developer chosen for each offshore zone. These developers will receive support through a two-way contract for difference (CfD). Under this system, the French state will cover the difference when market prices fall below a set reference price. Conversely, developers will repay any surplus when market prices exceed the agreed reference.
France’s ambitious offshore wind plans get a huge boost with EU approval for an €11 billion state aid scheme. This will fund three 500MW floating wind farms, supporting the 2030 renewable energy targets and diversifying the supply chain. #OffshoreWind #CleanEnergy #France @EU_Commission pic.twitter.com/xxxxxxxxxx
Safeguards Against Overcompensation
The European Commission has highlighted that the scheme incorporates robust safeguards, including provisions to halt payments during periods of negative market prices, thereby preventing developers from being overcompensated. These measures align with the conditions stipulated in the Clean Industrial Deal State Aid Framework.
France is actively seeking to build a more resilient domestic supply chain for its burgeoning offshore wind sector. This involves establishing supply chain diversification as both a prerequisite for participation and a key factor in the selection process. The aim is to lessen the reliance on critical wind turbine components manufactured in China.
The Commission has determined that this French measure is “necessary, appropriate and proportionate” for accelerating the shift towards a net-zero economy. It is also seen as crucial for strengthening key sectors within clean technology manufacturing, in accordance with EU Treaty provisions. For instance, in 2023, offshore wind power generation in the EU increased by approximately 13% compared to the previous year, demonstrating the sector’s rapid growth and importance (IRENA).
The full, non-confidential details of this decision will be accessible on the Commission’s competition website under case number SA.115764.
