Brussels:The European Commission has given the green light to a €2.04 billion Belgian scheme aimed at bolstering offshore wind energy, aligning with the objectives of the Clean Industrial Deal. This initiative is designed to support the transition towards a net-zero economy, following the approval under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on June 25, 2025.
According to European Commission - Lebanon, the Belgian government notified the Commission about the scheme under the CISAF, which aims to aid offshore wind energy projects. This new scheme replaces a previous State aid measure approved in 2024 under the Temporary Crisis and Transition Framework, which was intended to support the economy after Russia's aggression against Ukraine. The aid from this previous scheme was not utilized within the legal deadline of December 31, 2025. The newly approved scheme will extend over 20 years with a budget of €2.04 billion.
The initiative will specifically support the construction and operation of the first offshore wind farm in the Princess Elisabeth offshore zone in the North Sea. The wind farm is anticipated to have a capacity of up to 735 MW and could generate up to 2.6 TWh of renewable electricity annually. Aid will be distributed through a transparent bidding process, expected to conclude in the fourth quarter of 2027. The project will incorporate criteria from the Net Zero Industry Act to ensure diversification of wind turbine supply chains and reduce reliance on imports from outside Europe.
Under the scheme, aid will be structured as a monthly variable premium through a two-way contract for difference (CfD). Compensation will be calculated by comparing bid prices to a reference market price, adjusted for the wind farm's monthly capability. Payments will be made when the reference price is lower than the bid price, while beneficiaries will pay the Belgian authorities if the reference price surpasses the bid price.
The Commission confirmed that the scheme aligns with CISAF conditions, particularly as direct price support is provided through a capability-based two-way CfD. The competitive bidding process ensures that the compensation is awarded based on potential electricity production rather than actual production, adhering to EU electricity market design rules. The Commission concluded that the scheme is necessary, appropriate, and proportionate to accelerate the transition to a net-zero economy, in accord with Article 107(3)(c) of the Treaty on the Functioning of the EU and CISAF conditions.
The CISAF, adopted on June 25, 2025, supports measures in key sectors vital for transitioning to a net-zero economy, allowing Member States to grant aid for renewable energy expansion, temporary electricity price relief, industrial process decarbonization, clean technology manufacturing, and the de-risking of private investments in clean energy projects. More details on the CISAF are available online, and the decision will be published under case number SA.120400 on the Commission's competition website after resolving confidentiality issues.