Elia Transmission Belgium (ETB) and the European Investment Bank (EIB) have signed a €650 million green credit facility agreement, with the proceeds earmarked for the completion of the Princess Elisabeth Island project’s first phase.
Meant to assist facilitating transmission of wind energy from the North Sea to consumption centers on the mainland, the energy island is scheduled to be constructed between this year and 2027. It is located 45 kilometers off the Belgian coast within the Princess Elisabeth wind zone and has the capacity to integrate 3.5 GW of additional offshore wind capacity into Belgium’s electricity grid.
The island is also slated to serve as a landing point for additional interconnectors linking Belgium to its neighbors. The project will utilize hybrid interconnectors, as well as what the company dubs a nature-inclusive design to foster biodiversity and support marine life.
The high-voltage infrastructure installed on the island will bundle together the export cables of the Princess Elisabeth Zone wind farms while also serving as a hub for future interconnectors linking Belgium to the U.K. and other countries. These hybrid interconnectors will enable power exchanges between Belgium and its neighbors whilst also being connected to North Sea offshore wind farms.
The project is backed by the REPowerEU initiative, which aims to reduce Europe’s reliance on fossil fuel imports. In addition to the EIB funding, the energy island is a flagship project within Belgium’s recovery and resilience plan and secured a €100 million loan from the European Recovery and Resilience Facility under NextGenerationEU.
“We highly value the support provided by the European Investment Bank, which is a testament to our European ambitions and marks another milestone in our funding diversification strategy,” says Catherine Vandenborre, Elia Group’s interim CEO.
“Our proven expertise and pioneering work on creating an artificial energy island amplify Europe’s innovative edge and competitiveness amidst a global energy shift. This loan will provide us with stable, long-term financing with favorable conditions for the benefit of Belgian consumers.”
The Princess Elisabeth Island is so far set to be the first artificial energy island in the world hosting both high-voltage direct current and alternating current infrastructure. The first of the island’s caissons, or foundations, are currently being built in the Netherlands.
