The European Commission has approved a state aid programme worth around 63 billion euros to support the development of offshore wind energy in France over the next 25 years.
The programme is one of the largest public commitments to renewable energy in Europe to date, and is intended to accelerate the transition to a net-zero emissions economy while strengthening the bloc’s industrial competitiveness and energy security. It also builds on other EU-supported initiatives, such as the approval of €23 billion for Italy to generate renewable energy.
The programme will fund the construction and operation of eleven offshore wind farms in the North Sea, Atlantic Ocean and Mediterranean Sea. These projects are expected to have an installed capacity of up to 11.1 GW and are projected to generate around 47.8 TW/h of renewable electricity per year. This would cover around 10.6% of France’s annual electricity consumption. This increase in clean energy production will reduce dependence on imported fossil fuels and strengthen the electricity supply with domestically produced renewable sources.
The EU approved the measure at a time when it is seeking to promote the use of clean technologies to address three challenges simultaneously: climate change, instability in energy markets, and international competition in the production of technologies for the energy transition.
A New Framework to Accelerate the Energy Transition
The authorization was granted under the Clean Industrial Deal State Aid Framework (CISAF), adopted in June 2025 as part of the EU’s Clean Industrial Deal. This framework allows Member States to approve support programs for the development of renewable energy, the decarbonization of industry, and the strengthening of European production of clean technologies more quickly.
Following its assessment, the Commission concluded that the program is necessary and considered it appropriate and proportionate for advancing toward a net-zero emissions economy. It also determined that the measures include sufficient mechanisms to limit potential market distortions and ensure fair competition among participants.
Financial support will be provided through competitive, transparent, and non-discriminatory tenders organized by French authorities. Selected projects will receive support through two-way Contracts for Difference (CfDs), which seek to provide stability for both developers and the government.
Here's how it works: a reference price for electricity is set; if the market price is lower, the government pays the difference to the companies to provide secure revenue and facilitate large investments. If the market price is higher, the companies must return the excess to the government. This prevents disproportionate profits and reduces costs for citizens.
It is important to note that additional safeguards were incorporated to ensure the proper functioning of the electricity market, such as a prohibition on compensating producers when electricity prices are negative.
A Boost for European Industry and Climate Goals
Furthermore, the initiative aims to strengthen the entire offshore wind energy value chain in Europe. The investment is expected to boost sectors such as turbine manufacturing, port infrastructure development, the construction of power transmission grids, marine engineering, and other related services. The approval demonstrates that public investments are becoming increasingly important for accelerating the energy transition.
Europe is looking not only to reduce emissions but also to build its own industry capable of manufacturing key equipment on the continent, in order to reduce dependence on external suppliers in the ongoing global competition to lead in clean technologies.
France has been expanding its offshore wind energy plans in recent years, and this program reinforces that strategy by becoming one of the largest in the European Union. For three of the planned wind farms, the new system will replace the subsidies approved in 2025, bringing them into line with current CISAF rules. Teresa Ribera, the European Commission’s Executive Vice President for a Clean, Just, and Competitive Transition, noted that the decision will allow France to continue moving toward a fully decarbonized energy system and, in turn, contribute to the European Union’s shared climate goals.
In summary, these decisions demonstrate the EU’s intention to accelerate investments in clean energy through public instruments that combine sustainability, industrial competitiveness, and stability for investors. This will help to consolidate offshore wind as a key part of Europe’s energy and economic strategy for the coming decades.
ClearBlue Markets follows the issues moving the carbon markets on a global scale. For a walkthrough of our services for both voluntary and compliance market particpants, please contact us.