France is solidifying its leadership in floating offshore wind energy with the awarding of two new wind farms in the Mediterranean at highly competitive prices. The AO6 auction, completed in December 2024, established a benchmark tariff of €85.9/MWh, including connection and cable costs, marking a significant step in the maturity and economic viability of this technology.

The two awarded projects have a capacity of between 230 and 280 MW each and will be located in Occitanie (covering 48 km² and 25 km from the Aude coast) and Provence-Alpes-Côte d’Azur (covering 52 km² and 25 km from the coast). The Commission de Régulation de l’Énergie (CRE) recommended the awarding to OW Offshore SL – Eoliennes en Mer Participations for Project 1 and to Éoliennes Méditerranée Grand Large (EDF Renouvelables and Maple Power) for Project 2.

According to the CRE, “the offers reflect a sector with increasing competition, although challenges remain in validating emerging technologies such as wind turbines exceeding 22 MW”.

Analysis of Costs and Tariffs in the AO6 Auction

The CRE has detailed several key aspects in its report to evaluate the economic impact of this auction on the development of floating offshore wind energy:

1. Benchmark Tariffs:

• Project 1: €92.70/MWh, with an average tariff of €106.29/MWh.
• Project 2: €85.90/MWh, with an average tariff of €103.24/MWh.
• For comparison, the AO5 auction closed at €86.45/MWh in 2023.
• The AO6 auction saw a lower price dispersion, indicating a more mature sector, yet with different strategic approaches among developers.

2. Investment and Operating Costs:

• Initial investment: Between €3.2 and €4.2 million per MW installed, aligned with AO5 (€2.8-4.1M/MW).
• Annual operation and maintenance costs: Between €58,000 and €82,000/MW/year, compared to AO5 (€45,000-83,000/MW/year).
• Trend: Costs are stabilizing, suggesting greater efficiency and industry learning curves.

3. Competition and Wind Turbines:

• Increased presence of Asian wind turbine manufacturers, including Mingyang, Goldwind, and CSSC, reshaping competition in the European market.
• High-power turbines are gaining ground as they reduce installation and operational costs.
• However, the CRE warns of risks associated with dependence on emerging technologies, rating some 22.6 MW turbine offers as uncertain due to lack of proven availability for floating installations.

4. Risk of Underestimated Tariffs:

• Four offers underwent special review for presenting potentially underestimated prices.
• The CRE found overly optimistic cost assumptions, which could compromise project profitability in the long run.
• No offers were eliminated, as projects still have room for adjustments and reconfigurations.

France’s Massive Expansion in Offshore Wind Energy

Currently, France has:
✔ 1,500 MW in operation.
✔ 1,500 MW under construction.
✔ 1,900 MW in development under AO3, AO4, and AO5 auctions.

To reinforce its leadership, France has mapped out a long-term strategy with several upcoming auctions:

• AO7: 1 GW (fixed offshore wind) – Results pending.
• AO8: 1.6 GW (fixed offshore wind) – Results pending.
• AO9: 2.5 GW (floating offshore wind) – 12 pre-selected projects.
• AO10: Between 8 and 10 GW (two fixed-bottom and three floating projects) – Awarding scheduled for autumn 2026.

With this ambitious roadmap, France is on track to surpass 10 GW of offshore wind capacity, setting a new benchmark in the European offshore industry.

CRE Recommendations to Enhance Competitiveness

Following its evaluation of the AO6 auction results, the CRE has issued recommendations to enhance transparency, financial robustness, and risk assessment in future tenders:

1. Increase the weighting of technical and financial robustness criteria compared to the price offered.
2. Assess the credibility of expected post-contract profitability.
3. Conduct a more detailed analysis of the “productible” (expected energy output of each project).
4. Standardize the calculation of the Internal Rate of Return (IRR) for stakeholders to ensure consistent offer comparisons.
5. Adjust the price indexation period to better reflect legal delays affecting financial closures.

These measures aim to ensure the financial security of floating wind projects and guarantee that offers reflect realistic evaluations of costs and profitability.