European Investment Bank (EIB) has signed a €650m ($703m) green credit facility agreement with Elia Transmission Belgium to fund the Princess Elisabeth Island project’s initial phase.
This venture is pivotal for the energy transition in Belgium and Europe, aiming to transmit substantial wind energy from the North Sea to mainland consumption centres.
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The contract signing was held at the island’s caisson yard in Vlissingen, Netherlands.
Scheduled for construction between 2024 and 2027, Princess Elisabeth Island will be situated approximately 45km off the Belgian coast. It is set to be the world’s first artificial energy island and a cornerstone project for Elia Transmission Belgium.
The island will integrate an additional 3.5GW of offshore wind capacity into Belgium’s grid, enough to power more than three million households.
This project will not only decrease Belgium’s reliance on fossil fuels but also enhance the affordability of green electricity, contributing to the nation’s social welfare and industrial competitiveness.
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By GlobalDataIt is also expected to play a significant role in helping the European Union achieve its renewable energy and climate-neutrality objectives.
Moreover, Princess Elisabeth Island will act as a hub for Belgium’s second offshore wind zone and a connection point for further interconnectors with neighbouring countries.
EIB is particularly interested in the project’s innovative aspects such as hybrid interconnectors and a nature-inclusive design that promotes biodiversity and marine life.
The energy island is receiving considerable EU support due to its crucial role in the green energy transition for Belgium and the EU at large.
It is part of the REPowerEU initiative, which focuses on reducing Europe’s dependence on fossil fuels and fostering sustainable energy.
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.”
The project is a key component of Belgium’s recovery and resilience plan and has secured a €100m loan from the European Recovery and Resilience Facility under NextGenerationEU.
Elia Group’s interim CEO Catherine Vandenborre said: “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.
“This loan will provide us with stable, long-term financing with favourable conditions – for the benefit of Belgian consumers.”
