Commission approves French State aid to support offshore wind energy

This article is brought to you in association with the European Commission.
(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has approved a €63 billion French scheme to support offshore wind energy in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.

The French measure

France notified to the Commission, under the CISAF, a scheme to support offshore wind energy to contribute to the objectives of the Clean Industrial Deal. The scheme will run for 25 years and has a maximum budget of €63 billion.

The measure will support the construction and operation of eleven offshore wind farms, in the North Sea, the Atlantic and the Mediterranean. The windfarms are expected to have a combined capacity of up to 11.1 GW and to generate up to 47.8 TWh of renewable electricity per year, or around 10.6% of France’s annual electricity consumption.

The aid will be granted through a transparent and non-discriminatory bidding process, which France will organise. The aid will take the form of a variable premium under a two-way contract for difference (‘CfD’), which will be calculated by comparing a reference price, determined in the tender offer of the beneficiary (‘pay as bid’), to the market price for electricity.

When the market price is below the reference price, the beneficiaries will receive the difference between the two prices. When the market price is above the reference price, the beneficiaries will have to pay the difference to the French authorities.

The Commission found that the French scheme meets the conditions of the CISAF (sections 3 and 4.1.2). In particular, the aid will be provided as direct price support, through a two-way CfD, awarded via a competitive bidding process. It includes safeguards to ensure markets function properly and avoid compensating producers for effective production when market prices are negative.

The Commission concluded that the French scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities that are important for the implementation of the Clean Industrial Deal. This is  in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the CISAF.

On this basis, the Commission approved the French measure under EU State aid rules.

For three windfarms this scheme replaces a scheme that was approved by the Commission in August 2025.

Background

On 25 June 2025, the Commission adopted the CISAF to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Clean Industrial Deal.

The CISAF allows following types of aid, which can be granted by Member States until 31 December 2025 in order to accelerate the clean transition:

  • Measures accelerating the rollout of renewable energy and low-carbon fuels(sections 4.1 and 4.2). Member States can set up schemes for investments in all renewable energy sources as well as energy storage, with simplified tender procedures. Specific rules are also provided to accelerate the roll-out of low-carbon fuels.
  • Measures allowing temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity (section 4.5). Such measures will help to avoid industrial activities relocating to locations where environmental regulations are absent or less ambitious, before the decarbonisation of the EU’s electricity system fully translates into lower electricity prices.
  • Measures facilitating the decarbonisation of industrial processes (section 5). Member States can support investments in the decarbonisation of industrial activities to reduce dependency on imported fossil fuels. This can happen through electrification, energy efficiency and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions, with expanded possibilities to support the decarbonisation of industrial processes switching to hydrogen-derived fuels.
  • Measures to ensure sufficient clean technology manufacturing capacity (section 6). Member States can grant investment support for strategic projects in line with the Net Zero Industry Act (such as batteries, solar panels, wind turbines, heat-pumps, electrolysers, and carbon capture usage and storage). This also includes the production of key components and the production and recycling of related critical raw materials.
  • Measures to de-risk private investments required for the roll-out of clean energy, industrial decarbonisation, clean tech manufacturing, certain energy infrastructure projects, and projects supporting the circular economy (section 8).

More information on the CISAF can be found online.

For more information

The non-confidential version of today’s decision will be made available under the case number SA.120604 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.


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