The European Commission has approved a €2.04 billion Belgian State aid scheme to support the development of offshore wind energy in the North Sea. The funding will support the construction and operation of the first offshore wind farm in Belgium’s Princess Elisabeth offshore Zone. The initiative is intended to accelerate the country’s transition towards a net-zero economy while supporting the objectives of the European Union’s Clean Industrial Deal.
The scheme has been approved under the Clean Industrial Deal State Aid Framework (CISAF), which was adopted by the European Commission on 25 June 2025. It will remain in place for 20 years and has a maximum budget of €2.04 billion. The newly approved measure replaces an earlier Belgian State aid scheme that received Commission approval in 2024 under the Temporary Crisis and Transition Framework (TCTF). However, the earlier funding was not granted within the legal deadline of 31 December 2025, leading to the introduction of the new support mechanism.
The proposed offshore wind farm is expected to have an installed capacity of up to 735 MW and generate approximately 2.6 TWh of renewable electricity annually. The project is expected to contribute to Belgium’s renewable energy generation capacity and strengthen the supply of clean electricity in the region.
Financial support under the scheme will be allocated through a transparent and non-discriminatory competitive bidding process. The bidding results are expected to be announced in the fourth quarter of 2027. The tender will also incorporate prequalification requirements based on the European Union’s Net Zero Industry Act. These requirements will encourage diversification of wind turbine and major component supply chains, particularly by reducing dependence on imports from outside Europe. The approach is intended to strengthen European manufacturing capabilities, improve supply chain resilience and support the development of a competitive clean technology industry.
The financial assistance will be provided through a monthly variable premium under a two-way Contract for Difference (CfD) mechanism. Under this arrangement, the support amount will be calculated by comparing the project’s bid price with a reference electricity market price, adjusted according to the monthly capability of the offshore wind farm.
When the reference market price is lower than the bid price, the project beneficiary will receive payments from the Belgian authorities to cover the difference. However, when the market reference price rises above the agreed bid price, the beneficiary will be required to pay the difference back to the Belgian authorities. This mechanism is designed to provide revenue stability for developers while ensuring that consumers and public authorities can benefit when electricity market prices increase.
The European Commission assessed the scheme under sections 3 and 4.1.2 of the CISAF and concluded that it meets the applicable State aid requirements. The support will be linked to the potential electricity generation capability of the wind farm rather than its actual electricity production. This design is intended to maintain proper market functioning and prevent compensation for electricity production during periods when market prices are negative. It is also consistent with the European Union’s electricity market design rules.
According to the Commission, the Belgian scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy. It will also facilitate the development of economic activities considered important for implementing the Clean Industrial Deal. The approval has been granted under Article 107(3)(c) of the Treaty on the Functioning of the European Union.
The CISAF provides a broader framework through which EU member states can support clean energy investments and industrial decarbonization. It covers renewable energy deployment, low-carbon fuels, temporary electricity price relief for energy-intensive industries, industrial process decarbonization and clean technology manufacturing. It also allows governments to reduce investment risks for projects involving clean energy, energy infrastructure and the circular economy.
Through this approval, Belgium aims to advance its offshore wind development while strengthening Europe’s renewable energy supply chains and supporting its wider industrial decarbonization objectives.
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