Normandie Hydroliennes, a tie-up with regional investment fund Normandie Participations, has inked the deal with Alderney Electricity Limited (AEL).
The power will be supplied from the tidal array at Raz Blanchard, off the coast of northern France, which is due to come online in 2021.
Under the term of the outline agreement, AEL will purchase a minimum of 5 gigawatt-hours of electricity per year, which is sufficient to meet the current energy demand of the island.
The switch is part of an initiative to reduce Alderney’s reliance on carbon-intensive diesel generation.
For SIMEC the agreement “is the first, important step in unlocking the vast economic potential of the tidal flows around the Channel Island”, said chief executive Tim Cornelius.
“We subscribe to their vision of not only seeking to provide security of supply for the island, but also using this project as a model for other island communities seeking to decarbonise and provide new opportunities for economic resilience,” he added.