EU approves massive offshore wind scheme to 'help France reduce dependence on Russian fossils'
European Commission give green light to $11.6bn subsidy scheme to help country reach net-zero as wind at sea is in peril from far-right party that wants to impose moratorium on new wind
The European Commission has approved a multi-billion-euro French scheme to support the deployment of offshore wind energy, which it said will “help France reduce its dependence on Russian fossil fuels”.
France had notified the commission of the €10.8bn ($11.6bn) scheme to foster its transition towards a net-zero economy under the EU’s Temporary Crisis and Transition Framework adopted last year that aims at speeding up the rollout of renewable energy, facilitate the decarbonisation of industry and channel investments towards key net-zero economy sectors.
“With this €10.82 billion scheme, France can deploy offshore wind capacities faster, in line with the EU Strategy on Offshore Renewable Energy,” said Margrethe Vestager, executive vice-president in charge of competition policy at the European Commission.
“It will also help France reduce its dependence on Russian fossil fuels, while ensuring that any potential competition distortions are kept to the minimum.”
The subsidy system will work under a two-sided contract for difference (CfD) scheme that grants operators to receive payments between a CfD reference price established in a tender and the wholesale power market price if that is higher. In times of lower electricity prices, companies will have to pay surplus revenues back to the state.
The subsidy scheme will support the construction and operation of two bottom-fixed offshore wind farms, the 1-1.2GW South Atlantic wind farm and the 1.4-1.6GW Centre Manche 2 zone in Normandy.
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