France has officially opened a tender for 10 gigawatts (GW) of offshore wind capacity, marking one of the largest single auctions in European renewable energy history. The French government announced the tender on Tuesday, inviting developers to bid for projects across three maritime zones: the English Channel, the Atlantic coast, and the Mediterranean Sea. The initiative is part of France's broader strategy to reach 40GW of offshore wind by 2050, up from virtually zero today.
The tender will be phased, with the first projects expected to be operational by the early 2030s. Successful bidders will secure 20-year contracts for difference (CfDs), providing revenue stability similar to the UK's own CfD scheme. The French government has emphasised that the tender includes requirements for local content, aiming to boost domestic manufacturing of turbines, foundations, and cables. However, UK-based suppliers — particularly those in blade manufacturing, subsea cabling, and installation vessels — could still win substantial subcontracts.
For UK investors and pension holders, the French tender adds further momentum to the European offshore wind sector, which has faced headwinds from rising costs and supply chain bottlenecks. The FTSE 100's renewable energy and infrastructure funds, such as Greencoat UK Wind and The Renewables Infrastructure Group, may see indirect benefits if the tender drives down turbine costs through economies of scale. Shares in UK-listed offshore wind developers and suppliers, including SSE and Orsted's London-listed shares, could also be influenced by the increased pipeline visibility.
Analysts at energy consultancy Aurora Energy Research noted that the French tender could help stabilise global turbine prices by providing a large, predictable order book for manufacturers like Siemens Gamesa and Vestas. "This is a significant signal for the European supply chain," said a senior analyst. "It should encourage investment in new factory capacity, which has been lacking." However, they cautioned that France's notoriously slow permitting process could delay projects, a risk investors should monitor.
The tender comes as the UK government prepares for its own CfD allocation round later this year, with a target of 5GW of offshore wind. The French move may put pressure on UK ministers to increase auction volumes or offer more favourable terms to maintain competitiveness. For UK households, greater European offshore wind capacity could eventually lower wholesale electricity prices, though impacts will take years to materialise.
Source: French Ministry for Energy Transition, Reuters