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EU Approves €11B for French Offshore Wind Projects Expansion

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The European Commission has cleared an €11 billion support package for France aimed at expanding the French offshore wind energy capacity through three floating wind farms, together delivering 1.5 GW of power.

The scheme, approved under the Clean Industrial Deal State Aid Framework, is set to run for 20 years with a core aim to support France and the wider EU in reaching their renewable energy goals by 2030. At the same time, it’s designed to reduce dependence on imports for clean technology.

These French offshore wind projects will be developed across three coastal locations: one installation off southern Brittany and two in the Mediterranean. The project is expected to provide around 500 megawatts of capacity. Collectively, they should generate about 2.2 terawatt-hours of electricity per site every year, which is roughly enough to power 450,000 households across France.

Funding for the projects will be allocated through a competitive bidding process, with one selected bidder assigned to each offshore zone. The support will be structured as a two-way contract for difference (CfD), in which each developer’s proposed reference price is compared to market rates.

When market prices dip below the agreed reference point, the French government will compensate the difference. Should prices exceed the developer’s reference rate, the company will return the surplus to the state.

The Commission noted that the aid package includes built-in safeguards to prevent excessive payouts. One such measure is a provision to halt payments during periods when prices turn negative. The framework is fully aligned with the conditions outlined under CISAF, particularly in Sections 3 and 4.1.2.

To reduce strategic vulnerabilities, France has made supply chain diversification a key factor in how developers are selected. In addition to pricing, bidders must demonstrate how they plan to reduce reliance on critical components from dominant suppliers—most notably those sourced from China. 

The European Commission concluded that the initiative is “necessary, appropriate and proportionate.” It underscored the programme’s importance in advancing the EU’s transition toward a net-zero economy and supporting the broader industrial sectors tied to clean energy. The decision aligns with Article 107(3)(c) of the Treaty on the Functioning of the European Union.

Details of the decision, excluding confidential elements, will be made publicly available under case number SA.115764 on the Commission’s competition policy website. 

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