Elia Transmission Belgium (ETB) and the European Investment Bank (EIB) have signed a €650m green credit facility agreement, with the proceeds earmarked for the realisation of the first phase of the Princess Elisabeth Island project.
The Belgian energy island is crucial for the Belgian and European energy transition, helping to bring large amounts of wind energy from the North Sea to the consumption centres on the mainland.
The signing ceremony (pictured) for the contract took place at the island’s caisson yard in Vlissingen in the Netherlands in the presence of the Belgian Minister of Energy Tinne Van der Straeten, Head of European Commission Representation in Belgium Thomas de Béthune; and various diplomatic dignitaries from countries around the North Sea, including the Belgian and German ambassadors to the Netherlands and the Danish and German ambassadors to Belgium.
The Princess Elisabeth Island will be constructed between 2024 and 2027, about 45km off the Belgian coast within the Princess Elisabeth wind zone.
The site is one of ETB’s key projects and is the world’s first artificial energy island.
By integrating 3.5GW of additional offshore wind capacity into Belgium’s electricity grid (to power more than three million households), the site will reduce the country’s dependence on fossil fuels and provide more affordable green electricity, contributing to social welfare and industrial competitiveness.
It will also significantly contribute to the European Union meeting its renewable energy targets and climate-neutrality goal.
In addition to unlocking Belgium’s second offshore wind zone, the Princess Elisabeth Zone, the island will also serve as a landing point for additional interconnectors linking Belgium to its neighbours.
Another important element for the EIB is the project’s innovative nature, featuring hybrid interconnectors and a nature-inclusive design to foster biodiversity and support marine life, making it a benchmark for sustainable energy solutions.
The energy island will play an important role in the green energy transition for both Belgium and the broader European Union, which is why it receives substantial EU support.
The project is backed by the REPowerEU initiative, which aims to reduce Europe’s reliance on fossil fuel imports and accelerate the shift to sustainable energy. Additionally, the energy island is a flagship project within Belgium’s recovery and resilience plan, securing a €100 million loan from the overarching European Recovery and Resilience Facility under NextGenerationEU.
EIB Vice President Robert de Groot said: “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.
“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.”
Elia Group’s interim chief executive Catherine Vandenborre added: “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.
“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 favourable conditions – for the benefit of Belgian consumers.”