Belgian Energy Island Secures EUR 650 Million from EIB

October 28, 2024, by Adrijana Buljan

Elia Transmission Belgium (ETB) and the European Investment Bank (EIB) have signed an agreement for a EUR 650 million green credit facility whose proceeds will be used for the first phase of the Princess Elisabeth energy island project.

A map showing the location of Princess Elisabeth energy island — Princess Elisabeth energy island; Image source: Elia

The construction phase of what will become the first artificial energy island in the world has already started with the construction of the caisson foundations in Vlissingen, the Netherlands, where the agreement with EIB was also signed on 25 October.

The first caissons will soon be sunk into the sea and filled with sand to form the foundations of the island, which is planned to be completed in 2027.

The energy island will unlock Belgium’s second offshore wind zone, the 3.5 GW Princess Elisabeth Zone, and will also serve as a landing point for additional interconnectors that will link Belgium to neighbouring countries. Located 45 kilometres off the Belgian coast, the island features a nature-inclusive design to foster biodiversity and support marine life, Elia says.

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The Princess Elisabeth Island will be the first artificial energy island in the world to host both high-voltage direct current (HVDC) and alternating current (HVAC) infrastructure, according to the Belgian transmission system operator (TSO).

The high-voltage infrastructure will bundle together the export cables of the offshore wind farms in the Princess Elisabeth Zone while also serving as a hub for future interconnectors that will link Belgium to the United Kingdom and other countries.

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Elia says the energy island receives substantial EU support as it will play an important role in the green energy transition for both Belgium and the broader EU. The project is backed by the REPowerEU initiative and is a flagship project within Belgium’s recovery and resilience plan, securing a EUR 100 million loan from the overarching European Recovery and Resilience Facility under NextGenerationEU.

“The Princess Elisabeth Island project is a cornerstone for enhancing Belgium’s and Europe’s energy security and independence. This initiative not only strengthens Belgium’s energy infrastructure but also fosters vital interconnections with neighbouring countries, thereby promoting increased regional cooperation”, said Robert de Groot, Vice President of the European Investment Bank.

“By investing in this project, the EIB and Elia are deepening the European power market and paving the way for a sustainable, more secure and resilient energy future for all European citizens.”