France's offshore wind ambitions stalled by political turmoil

A political crisis in France has created uncertainty for offshore wind developers and equipment suppliers, who anticipate a business slowdown. 

The country's stalled energy framework changes and government tenders are the cause of this deceleration, according to a Reuters report.

New data released on Friday indicated a faster-than-expected decline in business activity in October, posing a further threat to the French economy.

With a fractured legislature struggling to agree on a belt-tightening budget and failing to approve the long-delayed PPE3 energy bill, which outlines future energy needs from 2026, President Emmanuel Macron has gone through six prime ministers in two years.

France’s lagging offshore wind capacity

France, Europe's second-largest economy, primarily relies on nuclear energy for its power generation. 

Despite its economic standing, its offshore wind power capacity lags significantly behind its European counterparts. 

Currently, France has only 3 gigawatts (GW) of offshore wind power either installed or in development.

This figure is dwarfed by Britain's impressive 16 GW already in operation, highlighting a substantial disparity in the adoption of this renewable energy source.

Recognising this gap and the growing global imperative for green energy, the French government has articulated ambitious plans to dramatically increase its offshore wind capacity. 

The stated goal is to grow capacity fourfold, a significant undertaking that would position France more competitively in the offshore wind sector. 

However, the implementation of these plans has faced delays, with new tenders for offshore wind projects now a year behind schedule. 

These delays underscore the challenges inherent in scaling up renewable energy infrastructure, from regulatory hurdles and permitting processes to securing investment and developing supply chains. 

The successful execution of these delayed tenders will be crucial in determining France's future trajectory in offshore wind and its broader commitment to a diversified and sustainable energy mix.

Industry impact and withdrawals

The US market has also come to a stop after President Donald Trump revoked projects and stopped new developments.

Last month, a tender for a 1 GW wind farm located off France's west coast received no bids. 

Christoph Zipf, a spokesperson for WindEurope, a lobby group, attributed this failure partly to the intricate nature of the project site and partly to a lack of clarity regarding government support, according to the Reuters report.

Government tenders previously included state support for bidders, but this is no longer guaranteed.

The government has not yet launched two additional tenders, totaling 12 GW, which were promised for bidding by the end of 2024 and awarding in the autumn of 2026.

According to Jules Nyssen, President of France's Renewable Energy Syndicate, an industry lobby group, companies in the renewables sector are currently freezing salaries and hiring. 

Several firms within the industry have also initiated headcount reductions.

Last month, RWE, a participant in a consortium with TotalEnergies, won a tender for a 1.5 GW offshore wind farm project.

However, RWE subsequently announced its intention to withdraw from the consortium.

RWE is considering withdrawing from the project because several factors have diminished its value in comparison to other international ventures, according to a company spokesperson.