Aug 11, 2025
The Commission has authorized an €11 billion state aid program from France to promote offshore wind energy.
The European Commission has approved an €11 billion French initiative to promote offshore wind energy, aligning with the Clean Industrial Deal goals. This initiative will aid in the transition to a net-zero economy and help achieve the EU's 2030 renewable energy targets. The scheme, which spans 20 years, was sanctioned under the Clean Industrial Deal State Aid Framework ('CISAF') established on June 25, 2025.
France submitted the €11 billion plan to support offshore wind energy development and enhance this clean technology sector in the EU. The initiative will fund the construction and operation of three floating offshore wind farms: one off the Southern Brittany coast and two in the Mediterranean. Each farm is projected to have a capacity of about 500 MW, generating approximately 2.2 TWh, sufficient to power 450,000 French households annually.
Aid will be provided through a transparent and non-discriminatory bidding process, selecting one beneficiary for each offshore zone. Resilience will be a prequalification and award criterion to diversify the supply chains for wind turbines and main components, reducing reliance on imports from China.
The aid will be structured as a monthly variable premium under a two-way contract for difference ('CfD'), calculated by comparing a reference price from the beneficiary’s tender to the market electricity price. If the market price is lower than the reference price, beneficiaries will receive payments for the difference. Conversely, if the market price exceeds the reference price, beneficiaries will pay the difference to the French authorities.
The Commission determined that the French scheme complies with CISAF requirements (sections 3 and 4.1.2). It provides direct price support via a two-way CfD awarded through competitive bidding, including safeguards to ensure market efficiency and to prevent compensation when market prices are negative.
Ultimately, the Commission concluded that the French scheme is necessary, suitable, and proportionate for propelling the transition to a net-zero economy and fostering key economic activities essential for implementing the Clean Industrial Deal, consistent with Article 107(3)(c) of the EU Treaty and CISAF conditions.
France submitted the €11 billion plan to support offshore wind energy development and enhance this clean technology sector in the EU. The initiative will fund the construction and operation of three floating offshore wind farms: one off the Southern Brittany coast and two in the Mediterranean. Each farm is projected to have a capacity of about 500 MW, generating approximately 2.2 TWh, sufficient to power 450,000 French households annually.
Aid will be provided through a transparent and non-discriminatory bidding process, selecting one beneficiary for each offshore zone. Resilience will be a prequalification and award criterion to diversify the supply chains for wind turbines and main components, reducing reliance on imports from China.
The aid will be structured as a monthly variable premium under a two-way contract for difference ('CfD'), calculated by comparing a reference price from the beneficiary’s tender to the market electricity price. If the market price is lower than the reference price, beneficiaries will receive payments for the difference. Conversely, if the market price exceeds the reference price, beneficiaries will pay the difference to the French authorities.
The Commission determined that the French scheme complies with CISAF requirements (sections 3 and 4.1.2). It provides direct price support via a two-way CfD awarded through competitive bidding, including safeguards to ensure market efficiency and to prevent compensation when market prices are negative.
Ultimately, the Commission concluded that the French scheme is necessary, suitable, and proportionate for propelling the transition to a net-zero economy and fostering key economic activities essential for implementing the Clean Industrial Deal, consistent with Article 107(3)(c) of the EU Treaty and CISAF conditions.