EU Commission approves EUR3.5 billion support to two offshore wind projects in Belgium

The European Commission has approved the Belgian government's plans to support two offshore wind projects with up to EUR3.5 billion (US$4.1 billion). The Commission's 2014 Guidelines on State aid for environmental protection and energy allow Member States to support renewable energy sources, subject to certain conditions.

The approval signifies the finding that the proposed aid will not unduly distort competition in the Single Market or cost taxpayers. The projects to benefit from the funding are Northwester 2 and Seamade (previously the Mermaid and Seastar projects, merged in July). Both are located in the Belgian territorial waters of the North Sea.

In December 2016, the Commission approved under EU State aid rules a Belgian offshore renewable energy scheme under which operators receive certificates for offshore energy produced from renewable energy sources from the federal energy regulator (CREG). The operators can then sell these certificates to the transmission system operator Elia at a premium on top of the price they receive for electricity sold on the market. The support to Northwester 2 and Seamade is granted under this scheme.

In the 2016 decision, Belgium committed to notifying the Commission of planned the support measures to the two projects. After receiving notification in August 2018, the Commission assessed the measure under the Guidelines on State aid for environmental protection and energy and found that the projects will promote the integration of renewable electricity into the market, in line with the Guidelines.

The Commission concluded that the projects will increase the share of electricity produced from renewable sources in Belgium and reduce pollution, while limiting any distortions of competition caused by the state support. They will help Belgium meet its target of producing 13% of its energy needs from renewable sources by 2020. 

Moreover, the Commission found that the aid to the three projects is necessary and has an incentive effect, given that, without public support, the projects would not be financially viable. Based on the information provided by Belgium, the support level is in line with the Guidelines and does not result in overcompensation.