EU Approves France Offshore Wind Scheme
The European Commission (EC) has approved a state aid scheme valued at up to €63 billion ($72 billion) to support the development of offshore wind energy projects in France.
The approval allows France to move forward with the construction and operation of more than 11 offshore wind farms with a combined potential capacity of up to 11.1 gigawatts (GW). The projects are expected to generate up to 47.8 terawatt-hours (TWh) of electricity annually, representing around 10.6% of France’s current yearly power consumption.
The 25-year support program will be implemented through competitive auctions managed by French authorities. Funding will be provided through a two-way contract-for-difference mechanism, which adjusts payments based on differences between market electricity prices and agreed reference prices.
The European Commission said the scheme includes safeguards to maintain market competition and prevent payments when electricity prices become negative.
Teresa Ribera, Executive Vice-President for a Clean, Just and Competitive Transition at the European Commission, said: “Today's decision clears the way for France's offshore wind support scheme. France will continue working towards a fully decarbonised energy system, and the Commission will continue supporting Member States in achieving our common climate objectives.”
The initiative aligns with the Clean Industrial Deal State Aid Framework (CISAF), which allows EU member states to provide support for clean energy deployment, industrial decarbonisation, and clean technology manufacturing.
The approval comes as European countries continue expanding renewable energy capacity to reduce emissions and strengthen energy security.
Source: finance.yahoo.com
