The European Commission has signed off on a €63bn ($72bn) French support scheme for offshore wind, according to Splash247, clearing the way for one of Europe's largest fixed-price clean power programmes. The package will support the construction and operation of 11 offshore wind farms across the North Sea, the Atlantic, and the Mediterranean over a 25-year period.
Scheme Details
The approved measure falls under the Clean Industrial Deal State Aid Framework, adopted in June 2025, the European Commission noted. Together, the projects are expected to deliver up to 11.1GW of capacity and generate up to 47.8TWh of renewable electricity annually, equivalent to about 10.6% of France’s annual power consumption.
| Metric | Value |
|---|---|
| Total aid package | €63bn ($72bn) |
| Number of wind farms | 11 |
| Installed capacity | Up to 11.1GW |
| Annual generation | Up to 47.8TWh |
| Share of France's consumption | ~10.6% |
| Support duration | 25 years |
Mechanism: Two-Way Contract for Difference
France will allocate the aid in the form of a two-way contract for difference (CfD), with payments linked to a reference price set in the bid and the market price for electricity. According to the European Commission, if market prices fall below the reference level, developers will receive the difference. If prices rise above it, developers will pay back the excess to the French authorities. The structure is intended to provide direct price support while keeping the market functioning properly. It also includes safeguards to stop producers from being paid for output when electricity prices are negative.
Regulatory Green Light
In approving the scheme, the Commission said it found the plan necessary, appropriate, and proportionate to accelerate the transition to net zero and to support economic activity aligned with the Clean Industrial Deal. Teresa Ribera, EU Commission’s EVP for Clean, Just, and Competitive Transition, commented: “The decision clears the way for France’s offshore wind support scheme. France will continue working towards a fully decarbonised energy system, and the Commission will continue supporting Member States in achieving our common climate objectives.”
Implications for Commodity Markets
While the package does not directly set commodity prices, the massive build-out of offshore wind under this scheme will drive long-term demand for materials used in turbine and infrastructure construction. The 11.1GW of new capacity will require substantial quantities of steel, copper, and rare earth elements for permanent magnets. For commodity traders and analysts, this policy signal reinforces structural demand growth for these metals, particularly as Europe accelerates renewable energy deployment under the Clean Industrial Deal. The approval also provides price certainty for developers through the CfD mechanism, potentially lowering financing costs and encouraging further investment in the offshore wind supply chain.
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