The European Commission has approved a USD 2.28 billion Belgian scheme to support offshore wind energy, a measure it says is in line with the objectives of the Clean Industrial Deal and will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF), which the Commission adopted on 25 June 2025.

A Replacement for an Earlier Measure

Belgium notified the scheme to the Commission under the CISAF. It replaces a former state aid measure approved by the Commission in 2024 under the Temporary Crisis and Transition Framework for State Aid Measures (TCTF), which was designed to support the economy following Russia's aggression against Ukraine.

The aid under that earlier TCTF scheme was not granted within the legal deadline of 31 December 2025. The newly approved scheme will run for 20 years and has a maximum budget of USD 2.28 billion.

Supporting a New Wind Farm in the North Sea

The measure will 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 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 transparent and non-discriminatory bidding process, with the result expected in the fourth quarter of 2027. The Net Zero Industry Act criteria will be included as tender prequalification criteria.

Among these, there will be a requirement to diversify wind turbines and main specific component supply chains to reduce dependency on imports from outside Europe in order to strengthen resilience.

A Two-Way Contract for Difference

The aid will take the form of a monthly variable premium under a two-way contract for difference, known as a CfD. Under this mechanism, the compensation will be calculated by comparing the bid price to a reference market price, weighted by the monthly capacity of the offshore wind farm.

When the reference price is below the bid price, the beneficiaries will receive payments from the scheme. When the reference price is above the bid price, the beneficiaries will have to pay the Belgian authorities.

Commission's Assessment

The Commission found that the Belgian scheme meets the conditions of the CISAF, specifically sections 3 and 4.1. 2. In reaching its conclusion, the Commission noted that the aid will be provided as direct price support through a capability-based two-way CfD, which will be awarded via a competitive bidding process.

A key feature of the design is that the compensation will be granted for the potential electricity production that the wind farm could have produced rather than for its actual production. According to the Commission, this design ensures that the market functions properly and that the scheme does not compensate producers for production in any periods during which the market value of that production is negative, in line with the EU's electricity market design rules.

On this basis, the Commission concluded that the Belgian scheme is necessary, appropriate, and proportionate to accelerate the transition towards a net-zero economy and to facilitate the development of certain economic activities that are important for the implementation of the Clean Industrial Deal. The approval is in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the CISAF.

Background on the CISAF Framework

The Clean Industrial Deal State Aid Framework was adopted by the Commission on 25 June 2025 to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Clean Industrial Deal. The framework allows Member States to grant certain types of aid to accelerate the clean transition, including through mechanisms such as the two-way CfD structure used in the Belgian scheme.

With this approval, Belgium can now proceed with its plan to bring the first offshore wind farm to the Princess Elisabeth Zone, with the bidding process expected to conclude in Q4 2027.

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