Belgium notified the Commission, under the CISAF, of a scheme to support offshore wind energy to contribute to the objectives of the Clean Industrial Deal. The scheme replaces a former State aid measure approved by the Commission in 2024 under the Temporary Crisis and Transition Framework for State aid measures (TCTF) to support the economy following Russia’s aggression against Ukraine. The aid for this TCTF scheme was not granted within the legal deadline of December 31, 2025. The scheme approved today will run for 20 years and has a maximum budget of €2.04 billion.
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 Q4 2027. The Net Zero Industry Act criteria will be included as tender prequalification criteria: there will be a requirement to diversify wind turbine and main specific components supply chains to reduce dependency on imports from outside Europe, in order to strengthen resilience.
The aid will take the form of a monthly variable premium under a two-way contract for difference (CfD). The compensation will be calculated by comparing the bid price to a reference market price, weighted by the monthly capability of the offshore wind farm. The beneficiaries will receive payments when the reference price is below this bid price. When the reference price is above the bid price, the beneficiaries will have to pay the Belgian authorities.
The Commission found that the Belgian scheme meets the conditions of the CISAF (sections 3 and 4.1.2). In particular, 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. The compensation will be granted for the potential electricity production that the wind farm could have produced rather than for its actual production. 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.
The Commission concluded that the Belgian scheme is necessary, appropriate, and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities that are important for the implementation of the Clean Industrial Deal. This 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.
On this basis, the Commission approved the Belgian measure under EU State aid rules.
On June 25, 2025, the Commission adopted the CISAF 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 CISAF allows the following types of aid, which can be granted by Member States in order to accelerate the clean energy transition:
- Measures accelerating the rollout of renewable energy and low-carbon fuels (sections 4.1 and 4.2). Member States can set up schemes for investments in all renewable energy sources as well as energy storage, with simplified tender procedures. Specific rules are also provided to accelerate the roll-out of low-carbon fuels.
- Measures allowing temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity (section 4.5). Such measures will help to avoid industrial activities relocating to locations where environmental regulations are absent or less ambitious, before the decarbonization of the EU’s electricity system fully translates into lower electricity prices.
- Measures facilitating the decarbonization of industrial processes (section 5). Member States can support investments in the decarbonization of industrial activities to reduce dependency on imported fossil fuels. This can happen through electrification, energy efficiency, and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions, with expanded possibilities to support the decarbonization of industrial processes switching to hydrogen-derived fuels.
- Measures to ensure sufficient clean technology manufacturing capacity (section 6). Member States can grant investment support for strategic projects in line with the Net Zero Industry Act (such as batteries, solar panels, wind turbines, heat pumps, electrolyzers, and carbon capture, utilization, and storage). This also includes the production of key components and the production and recycling of related critical raw materials.
- Measures to de-risk private investments required for the roll-out of clean energy, industrial decarbonization, clean tech manufacturing, certain energy infrastructure projects, and projects supporting the circular economy (section 8).
More information on the CISAF can be found online.
The non-confidential version of today’s decision will be made available under the case number SA.120400 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.
“The energy we produce at home is energy we don’t need to import. The Belgium €2.04 billion scheme for lot 1 of the Princess Elisabeth offshore zone will deliver up to 2.6 TWh of clean electricity a year, strengthening our energy independence while making progress towards a more competitive, decarbonized European economy,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition.
