The European Union green-lighted a French plan to support the construction and maintenance of three floating offshore wind energy farms with €11 billion as part of the EU’s Clean Industrial Deal State Aid Framework (CISAF).
France requested permission from the EU to grant state subsidies for the three offshore wind farms. One will be in the Atlantic Ocean off the coast of Brittany, the other two in the Mediterranean Sea. Each will have a capacity of around 500 MW and will generate 2,2 TWh, supporting roughly 450,000 French households.
The aid has been deemed in line with CISAF and proportionate with the EU’s targets to push for green energy and transition energy consumption to renewable sources. It also meets the EU’s threshold for safeguards to avoid market distortions.
Teresa Ribera, Executive Vice-President of the European Commission for Energy Transition, has confirmed this view. She said that “France will be able to deploy offshore wind capacities faster, in line with the Clean Industrial Deal.” She noted that the scheme will “help France reduce its dependence on fossil fuels imports and enhance its renewable energy share, while ensuring that any potential competition distortions are kept to the minimum.”
Under the terms of the aid, France will grant aid to one beneficiary producer per wind farm after a transparent bidding process. The aid will be a monthly variable premium, calculated based on a reference price. If the price falls below the reference price, France will pay the beneficiary. Vice-versa, the beneficiary will pay France in case the reference price goes higher.
