France Opens USD 14 Billion Bidding Program to Build Five Offshore Wind Farms

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France Opens USD 14 Billion Bidding Program to Build Five Offshore Wind Farms


France opened a 10 billion-euro ($14 billion) bidding program to build five wind farms at sea as it seeks to get 23 percent of its energy from renewable sources by 2020.

The government opened the first round of bidding for the five zones which will have a maximum capacity of 3 gigawatts of offshore wind power. This first phase of bidding will support more than 10,000 jobs, Energy Minister Eric Besson said in a statement today.

France gets 38 percent of its energy from atomic plants, the most in the world, and is seeking to boost the share that comes from renewable supplies such as solar and wind. Energy companies including GDF Suez (GSZ) SA and Vinci SA (DG) as well as nuclear plant builder Areva SA already have said they’d work on the offshore projects.

The nation plans to install 6,000 megawatts of offshore wind power, or about 1,200 wind turbines, by 2020. It has none now and wants to build up an industry for new energy supplies.

It will open a second round of bidding in April 2012, according to the statement. Ministers are starting a consultation to identify where the new zones under that round would be, the government said.

The initial round of bidding requires candidates to submit proposals by Jan. 11 followed by pre-selection in April. A final decision will be announced in 2013 after all risks have been assessed and the feasibility of the projects confirmed, according to the statement. The installations will be put into service from 2015 to 2020.

Companies are forging partnerships in preparation for the wind initiative. Areva SA, the world’s biggest maker of nuclear equipment, and Iberdrola Renovables SA (IBR) already agreed to jointly develop projects.

Areva also signed an accord to develop projects with the French energy producer GDF Suez SA and Vinci SA while Paris- based EDF Energies Nouvelles SA (EEN) and Alstom SA (ALO) signed an agreement on Jan. 19 to develop facilities.

Sally Bakewell (Bloomberg)

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