The European Commission has approved a €11 billion state aid scheme by France aimed at supporting the development of offshore wind energy. The measure aligns with the Clean Industrial Deal objectives and is set to accelerate the transition toward a net-zero economy and help meet the EU's 2030 renewable energy targets.

The aid scheme will fund the construction and operation of three floating offshore wind farms: one off Southern Brittany's coast and two in the Mediterranean Sea. Each farm is expected to have a capacity of approximately 500 MW and generate around 2.2 TWh annually--enough electricity for 450,000 French households.

Under the Clean Industrial Deal State Aid Framework (CISAF), the scheme will run for 20 years and employs a competitive bidding process. Aid will be delivered via a two-way contract for difference (CfD), ensuring beneficiaries receive payments when market electricity prices fall below a reference price and repay when prices exceed it. This mechanism safeguards market function and prevents overcompensation.

The scheme also emphasizes supply chain resilience, requiring tender participants to diversify wind turbine and component sourcing to reduce dependency on imports from China.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, highlighted the scheme's role in speeding up offshore wind deployment while minimizing competitive distortions and fossil fuel reliance.

The Commission determined the aid to be necessary, proportionate, and in compliance with EU State aid rules.