TotalEnergies and RWE will develop and build a 1.5 GW offshore wind farm off Normandy after winning the Centre Manche 2 tender by France’s Government. The French state awarded the project to the consortium at a contract value of €4.5 billion (US$5.3 billion).
The contract covers offshore and onshore development, construction and initial operation. The consortium will now move into final project permitting, financing and planning. Officials also say the 1.5 GW concession, known as Centre Manche 2, will feature what is be the largest offshore wind farm in France.
Normandy Offshore Wind Project Factsheet
Location: Offshore Normandy, France
Developers: TotalEnergies and RWE
Operator: TotalEnergies
Investment: 4.5 billion (US$5.3 billion)
Capacity: 1.5 GW
TotalEnergies-RWE Contract Scope: Development, construction, onshore connection, initial operation
Status: Contract awarded by French government. Final permitting, financing and procurement to follow
Expected impact: Power over 1.5 million households
Construction Jobs: Up to 2,500
Construction Duration: 3 years
Offshore Wind Tender: Centre Manche 2 (AO8)
Outlook on the TotalEnergies-RWE Normandy Offshore Wind Contract
TotalEnergies will lead the development alongside RWE. The two partners also bring complementary strengths to the wind project. This is in the sense: TotalEnergies has a strong French market footprint and power business, while RWE has offshore wind construction and operating experience. The two companies will also share development risk and capital for the 1.5 GW offshore wind farm in Normandy.
Construction of the 1.5 GW Normandy wind farm will require major offshore foundations, turbines, inter-array cabling and an onshore grid connection. The construction timeline is, however, subject to France’s permitting and grid-connection process. Observers also note that France must speed up approvals if it is to meet its offshore targets. France’s offshore wind permitting has also been an issue repeatedly talked about by TotalEnergies. Once operational, the Normandy offshore wind project will deliver power to more than 1.5 million households.
Why TotalEnergies and RWE €4.5bn Win in Normandy Offshore Wind Contract Matters
The 1.5 GW offshore wind farm in Normandy moves France toward its 2030 and 2050 renewables goals.
The TotalEnergies-RWE contract award also signals continued capital flow into European offshore wind market despite recent volatility. Additionally, for OEMs, shipyards and cable suppliers, the project will also create multi-year demand. For investors, this project offers a promising, state-backed concession with long-term revenue potential. However, this hangs on the promise that permitting and grid works keep pace.
The Normandy offshore wind contract also boosts TotalEnergies’ fast-growing renewables portfolio, which already exceeds 22 GW in operation or under construction. For RWE, it also adds to its global offshore wind pipeline of over 12 GW.
TotalEnergies will also channel €10 million to support training, education, and culture programs in Normandy. The multinational energy and petroleum company also pledges €45 million to counter impacts and risks associated with the Normandy offshore wind project. Also in the list of financial incentives for the Normandy offshore wind farm is a €15 million biodiversity fund.
Sustainability has also been promised. This will feature in the recycling of offshore wind farm components, reusing, and repurposing of blades, towers, nacelles, and generator magnets.
