French flair or Danish design? Both have adopted the Capability CfD framework but France's AO10 takes a slightly different path from Denmark's.
France is looking to be the next mature European market moving from a traditional two-sided CfD to a Capability CfD.
The French government has published the draft terms for the upcoming AO10 lease and support auction with a tentative timeline as well as introducing a materially different CfD design compared to previous ones.
The CfD scheme shares the same DNA with Denmark’s Capability CfD but transfers more risk to the state, which could put the upcoming auction sites in a favorable position, if sufficient support is allocated:
🔹France would be among the first European offshore wind auction to apply the new EU state-aid rules allowing for a 25-year support period.
🔹Settlement volumes calculations are based on the wind farm’s theoretical output, rather than its actual delivered production but the method is different compared to the Danish.
🔹External wake effects are compensated through an upward adjustment to the support payment.
The result is a more complex support framework but where the developer's exposure across more risk dimensions are mitigated.
Final auction conditions are expected in May this year, with awards tentatively set for February 2027.
Aegir Insights’ new report compares France and Denmark's Capability CfDs in full, covering settlement methodology, claw-back mechanics, and the key design differences.
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