The European Commission has greenlit a €11 billion (£9.6bn) French initiative to bolster offshore wind energy, marking a significant step in the continent’s renewable energy ambitions. This scheme, targeting the construction and operation of three floating offshore wind farms, underscores France’s commitment to reducing fossil fuel dependence and increasing renewable energy share.
The approved measure will support the development of one wind farm off the coast of Southern Brittany and two in the Mediterranean Sea. Each farm is projected to have a capacity of around 500MW, collectively generating enough electricity to power approximately 450,000 French households annually. This capacity is expected to accelerate France’s offshore wind deployment, aligning with the broader Clean Industrial Deal.
The financial mechanism behind this scheme is a two-way contract for difference (CfD). This model ensures that when the market price for electricity falls below a predetermined reference price, the beneficiaries—presumably the wind farm operators—receive payments to cover the difference. Conversely, if the market price exceeds the reference price, the beneficiaries will pay the difference to the French authorities. This ‘pay as bid’ approach aims to minimize potential competition distortions while providing a stable revenue stream for the wind farms.
Teresa Ribera, Executive Vice President for Clean, Just and Competitive Transition, highlighted the scheme’s strategic importance. “With this €11 billion scheme, France will be able to deploy offshore wind capacities faster, in line with the Clean Industrial Deal,” Ribera stated. She added that the initiative will help France reduce its dependence on fossil fuel imports and enhance its renewable energy share.
The approval of this scheme is expected to catalyze further development in the offshore wind sector, particularly in floating wind technology. As France moves forward with these projects, it could set a precedent for other European countries looking to harness offshore wind energy, especially in regions with deep waters where traditional fixed-bottom turbines are not feasible. The two-way CfD model could also gain traction as a viable mechanism for balancing market risks and ensuring the financial viability of renewable energy projects.
Moreover, this development could spur innovation in the renewable energy sector, driving down costs and improving efficiency. As more countries invest in offshore wind, the sector could see increased competition, leading to technological advancements and more sustainable energy solutions. The focus on floating wind farms, in particular, could open up new opportunities for research and development, further propelling the sector forward.
In the broader context, this scheme aligns with the European Union’s goal of achieving climate neutrality by 2050. By reducing reliance on fossil fuels and increasing the share of renewable energy, France is not only contributing to this overarching objective but also positioning itself as a leader in the renewable energy transition. The success of this initiative could inspire similar projects across Europe, accelerating the continent’s shift towards a cleaner, more sustainable energy future.