The aid will be granted on the basis of a transparent and non-discriminatory bidding process. The aid will take the form of a monthly variable premium under a two-way contract for difference (CfD). The price premium will be paid over a period of 20 years. This price premium will be granted for the potential electricity production of the wind farm rather than for the actual electricity production. The benefit of this capability-based design is to expose the actual electricity production to market prices, as the renewable energy source (RES) producer revenues will be directly linked to its electricity sales.
The price premium will be calculated by the Belgian regulator (CREG) by comparing the strike price, determined in the tender offer of the selected beneficiary, to a reference market price for electricity. When the strike price exceeds the reference market price, the difference (price premium) is paid by the Belgian state to the beneficiary. Conversely, when the reference market price exceeds the strike price, the beneficiary will have to pay the difference to the Belgian authorities.
The Commission found that the Belgian scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework (TCTF). In particular: (i) the aid will be granted on the basis of a scheme with an estimated volume and budget; (ii) the aid amount will be determined through an open, clear, transparent, and non-discriminatory competitive bidding process; and (iii) the aid will be granted before 31 December 2025.
The scheme was approved under the State aid Temporary Crisis and Transition Framework (TCTF) adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.
