The European Commission approved, under EU state aid rules, a €2.08 billion French measure to support offshore wind electricity production in France. The measure will contribute to the achievement of France's energy and environmental objectives, as well as objectives related to the EU Offshore Renewable Energy Strategy and the European Green Pact.

As reported by the European Commission, France notified the Commission of its intention to support the construction and operation of a floating offshore wind farm in the sea off the coast of southern Brittany. The aid measure, which will last for 20 years from the exploitation of the wind farm in 2028, will have a maximum total budget of EUR 2.08 billion.

Floating offshore wind technology is at an early stage in France; so far only small pilot projects have been developed. The floating offshore wind farm supported by the measure will be the first commercial project of its kind in France. It is expected to have a capacity of 230 to 270 MW and to generate 1 TWh of renewable electricity per year for a period of 35 years.

The beneficiary of this measure will be selected through a transparent and non-discriminatory tendering process, where bidders will compete mainly on the basis of the amount of aid per MW of installed capacity. The beneficiary is expected to be designated in the second half of 2023.

The aid will be granted in the form of a monthly variable premium under the two-way Contract for Difference model. The variable premium will be calculated by comparing a reference price, determined in the beneficiary's tender offer ("pay as bid"), and the market price of electricity. Where the market price is lower than the reference price, the beneficiary is entitled to receive payments equal to the difference between the two prices. On the other hand, where the market price is higher than the reference price, the beneficiary will have to pay the difference between the two prices to the French authorities.

The measure will help France to meet its target of producing 33% of its energy needs from renewable sources by 2030. The scheme is expected to reduce greenhouse gas emissions by 430,000 tonnes of carbon dioxide per year.

“The measure adopted enables France to step up its renewable offshore production capacities, while limiting possible distortions of competition in the Single Market. It will contribute to achieving the ambitions of the EU Offshore Renewable Energy Strategy and the European Green Deal”, explained Margrethe Vestager, Executive Vice-President in charge of Competition Policy.