Elia Transmission Belgium has announced it will ditch a contract for HVDC infrastructure for the Princess Elisabeth island due “unprecedented global increases” in the price of the high-voltage equipment.
ETB said the move, which followed the signing of the contract being suspended earlier this year, was in line with a government policy to deliver a scheme that “remain(s) aligned with the original objectives of the project at lower cost”.
“The decision taken by the government today aims to control the costs and optimise the investments associated with the development of the Princess Elisabeth energy hub,” said the transmission system owner.
ETB added construction of the artificial island in the Belgian North Sea “is ongoing” including the implementation of already-signed alternating current (HVAC) contracts that will ensure two (700MW + 1400MW) of three future wind farms planned for the Princess Elisabeth offshore zone can come online by the 2030s.
The island has also been designed to act as the connection point for a hybrid interconnector to the UK (Nautilus project).
ETB said it had now been given a mandate by Belgian energy minister Mathieu Bihet to develop “an alternative concept” for the next phase of the hub including the realisation of a second interconnector.
ETB CEO Frederic Dunon added: “We support the government’s ambition to realise the project’s core objectives through an optimised configuration which has adapted to current market conditions. We are pleased that the strategic importance of future offshore development and a second interconnector with the UK has been reaffirmed.”