EU approves 2.04 billion euros (about $2.29 billion) Belgian aid for offshore wind farm

BRUSSELS — The European Commission has approved a 2.04 billion euros (about $2.29 billion) Belgian scheme to support offshore wind energy, backing the construction and operation of the first offshore wind farm in the Princess Elisabeth offshore Zone in the North Sea.

The scheme will run for 20 years and has a maximum budget of 2.04 billion euros (about $2.29 billion), the European Commission said. The wind farm is expected to have a capacity of up to 735 MW and to generate up to 2.6 TWh of renewable electricity per year.

The aid will be granted through a bidding process, with the result expected in the fourth quarter of 2027, according to the European Commission. The tender's prequalification criteria will include a requirement to diversify wind turbine and main component supply chains to reduce dependency on imports from outside Europe.

The aid will take the form of a monthly variable premium under a two-way contract for difference. Beneficiaries will receive payments when a reference market price is below their bid price and will have to pay the Belgian authorities when the reference price is above it, the European Commission said.

Compensation will be granted for the electricity the wind farm could have produced rather than its actual production. The European Commission said this design means the scheme does not compensate producers for production in periods when the market value of that production is negative.

The scheme was approved under the Clean Industrial Deal State Aid Framework, adopted on June 25, 2025. The European Commission concluded the scheme is necessary, appropriate and proportionate.

The scheme replaces a measure approved in 2024 under an earlier temporary framework, under which the aid was not granted within the legal deadline of Dec. 31, 2025. The case number is SA.120400.