France has secured €10.8 billion ($11.6 billion) in financing from the European Commission to advance the development of two offshore wind farms. This funding marks a significant step towards France’s goals of achieving net-zero energy and reducing reliance on Russian fossil fuels.
The first project, located in the South Atlantic, is expected to generate between 1,000 to 1,200 MW of power annually, contributing approximately 3.9 TWh of renewable electricity. The second project, situated in Normandy, aims to produce between 1,400 to 1,600 MW annually, generating about 6.1 TWh of electricity.
This financing package falls under the French State aid Temporary Crisis and Transition Framework (TCTF), initiated by the European Commission last year. It supports France’s efforts to expand offshore wind energy capacity over the next 20 years, facilitating a transition towards a net-zero economy.
Margrethe Vestager, Executive Vice-President for competition policy, emphasized the strategic importance of the €10.82 billion scheme in accelerating France’s deployment of offshore wind capacity, aligning with EU objectives on renewable energy. The initiative also aims to mitigate potential market distortions and reduce dependence on Russian energy sources.
France’s recent efforts to streamline offshore wind deployment include publishing a revised auction schedule, identifying new sites, and extending existing ones. Despite having favorable wind resources and extensive coastline, France has faced criticism for lagging behind other European countries like the United Kingdom and Germany in offshore wind development.
Currently, France operates three offshore wind farms, including the recently commissioned project off Fécamp with a capacity of 497 MW. The country targets achieving 18 GW of installed offshore wind capacity by 2035 and 45 GW by 2050.
Under the European Commission’s framework, financial aid for these projects will be structured as monthly variable premiums through a contract for difference (CfD). This mechanism will ensure developers receive support when market electricity prices fall below a specified reference price.
This marks the second instance France has received financial aid under the TCTF scheme, following last year’s approval of $4.4 billion for two floating offshore wind farms in the Golfe du Lion region. Each of these projects has a capacity of 230 to 280 MW and could generate approximately 1.1 TWh of electricity annually.
Stay updated with supply chain logistics news on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.
#OffshoreWindFarms #RenewableEnergy #EUFinancing #GreenEnergy #SupplyChainNews
