France Launches €10 Billion Offshore Wind Bonanza

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The first phase of France's attempt to create an offshore wind energy industry has been officially launched by the French government.

The government has offered the first tender, inviting bids to build 3,000 megawatts (MW) of windfarms around the country's coastlines. The long-awaited €10 billion ($14 billion) tender seeks proposals from energy companies to build windfarms at five offshore locations. In addition to the first tender, the government confirmed that it will launch another tender for a further 3,000 MW of offshore windfarms next April. The winners of the first phase will be pre-selected next year, but zones will not be finally allocated until 2013.

France, which currently obtains about 75% of its electricity from nuclear power plants, has set a goal of generating 23% of its power from renewable energy sources by 2020. To date, France generates slightly more than 12% from renewables.

Industrial Info is tracking nearly 20 projects that will be submitted for the first and subsequent phases of the French windfarm program.

"In addition to the evolution of the energy mix in France, the aim is to build a French industry sector and become a leader in offshore wind and marine renewable energies," said Nathalie Kosciusko-Morizet, minister for ecology, sustainable development, transportation and housing. "This is a unique opportunity for the development of ports, shipyards and employment areas located on the coast. The aim is to create a French industry and gain a leadership position in the world. We are calling for industry to mobilize to create a subsidiary of excellence."

Energy companies have indeed been mobilising in earnest in recent weeks, to create multi-skilled alliances aimed at winning one or more of the five zones on offer. Last week, Iberdrola Renovables, a subsidiary of Iberdrola SA (MCE:IBE) (Bilbao, Spain), and Areva SA (EPA:AREVA) (Paris, France) signed a memorandum of understanding to jointly bid for two of the five zones. Separately, Areva has teamed up with GDF Suez (EPA:GSZ) (Paris, France) and Vinci Construction (EPA:DG) (Paris, France) to bid for three zones. For additional information, see June 30, 2011, article - Iberdrola Renovables and Areva Sign Agreement for French Offshore Wind Bid.

This week, another consortium of six companies led by EDF Energies Nouvelles S.A. (EPA:EEN) (Paris), Dong Energy A/S (Fredericia, Denmark) and Alstom S.A. (EPA:ALO) (Paris, France) announced intentions to bid for all five of the proposed zones.

The five zones being offered in the first tender are:

• Tréport (Seine-Maritime, Somme) - 110 square kilometres, maximum power of 750 MW

• Fecamp (Seine-Maritime) - 88 square kilometres, maximum power of 500 MW

• Courseulles-sur-Mer (Calvados) - 77 square kilometres, maximum power of 500 MW

• Saint-Brieuc (Côtes d'Armor) - 180 square kilometres, maximum power of 500 MW

• Saint-Nazaire (Loire-Atlantique) - 78 square kilometres, maximum power of 750 MW

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.