ANNOUNCEMENT 26 Jul 2019

On 6 January 2017, France notified the European Commission of its intention to provide financial support, in the form of feed-in tariffs, to Éoliennes en Mer Îles d’Yeu et de Noirmoutier's Islands of Yeu et Noirmoutier wind farm project. On 26 July 2019, the European Commission approved the financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.47246 France - Offshore wind park in Islands of Yeu et Noirmoutier: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_47246
Letter to the Member State - Published on 12 August 2019, Aide d’État SA.47246 (2017/NN) — France Parc éolien en mer des Iles d'Yeu et de Noirmoutier: https://ec.europa.eu/competition/state_aid/cases1/201933/265141_2088479_221_2.pdf
Official Journal of the European Union, Authorisation for State aid pursuant to Articles 107 and 108 of the Treaty on the Functioning of the European Union Cases where the Commission raises no objections, issued on 23 August 2019: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.C_.2019.286.01.0001.01.ENG&toc=OJ:C:2019:286:TOC
ENGIE, Press release of 18 December 2018, ENGIE and EDPR sign an alliance with Sumitomo Corporation for the development of offshore wind projects in Yeu-Noirmoutier and Dieppe-Le Tréport: https://www.engie.com/wp-content/uploads/2018/12/pr-engie-and-edpr-sign-an-alliance-with-sumitomo-corporation.pdf

Inception date: 01 Jan 2024 | Removal date: 31 Dec 2043

Price stabilisation

On 26 July 2019, the European Commission approved the granting of feed-in tariffs for the future electricity produced by Éoliennes en Mer Îles d’Yeu et de Noirmoutier's Islands of Yeu et Noirmoutier wind farm project for a period of twenty years from the start of production. Production is expected to commence from 1 January 2024. The feed-in tariffs represent the difference between the market price and the guaranteed purchase price of electricity. This subsidy is estimated to have a total value of EUR 3.668 billion (around USD 4.2 billion) i.e. approximately EUR 183.4 million per year. 

The beneficiary of the feed-in tariffs is the company Éoliennes en Mer Îles d’Yeu et de Noirmoutier. The company is a consortium between ENGIE with a 31% equity stake (via its subsidiary ENGIE GREEN Holding), EDP Renewables with a 29.5% equity stake (via EDP RENEWABLE EUROPE), Sumitomo Corporation with a 29.5% equity stake (acquired in December 2018 via a subsidiary), and La Banque des Territoires (part of Groupe Caisse des Dépôts) with a 10% equity stake. 

The Commission noted in its decision text that: "Electricity is highly traded, particularly between Member States, the notified measure may distort competition in the electricity market and affect trade between Member States. France is interconnected with the United Kingdom, Belgium, Germany, Italy and Spain. The measure is therefore likely to distort the electricity exchanges between France and the neighbouring Member States." (own translation) 

The Commission, however, decided, following an investigation of the state aid: "not to raise objections to the notified State aid on the ground that it is compatible with the internal market pursuant to Article 107 (3) (c) TFEU" (own translation)

Additionally, the European Commission also approved feed-in tariffs to be granted to five other offshore wind farm projects in France, see related state acts. 

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

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