A €11 billion (£9.6bn) scheme aimed at supporting offshore wind energy in France has been granted approval by the European Commission.
The measure will support the construction and operation of three floating offshore wind farms – one off the coast of Southern Brittany and two in the Mediterranean Sea.
Each wind farm is expected to have a capacity of around 500MW and generate enough electricity equivalent to the annual consumption of 450,000 French households.
Under this scheme, the aid will take the form of a monthly 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 be entitled to receive payments equal to the difference between the two prices.
When the market price is above the reference price, the beneficiary will have to pay the difference between the two prices to the French authorities.
Teresa Ribera, Executive Vice President for Clean, Just and Competitive Transition said: “With this €11 billion scheme, France will be able to deploy offshore wind capacities faster, in line with the Clean Industrial Deal. It will also help France reduce its dependence on fossil fuels imports and enhance its renewable energy share, while ensuring that any potential competition distortions are kept to the minimum.”
France’s €11bn scheme to support floating offshore wind wins EU approval appeared first on Energy Live News.