Elia bags EIB loan for Belgian energy island as project costs grow

Belgian electricity transmission operator Elia Group SA (EBR:ELI) will receive EUR 650 million (USD 701.9m) in debt financing for the first phase of the Princess Elisabeth Island project off the coast of Belgium.

A green credit facility agreement was signed with the European Investment Bank (EIB), the lender said on Friday. The news was announced just after Flemish public broadcast VRT NWS reported Elia has faced a “significant increase” in costs related to the project due to growing equipment prices, particularly for cables and high-voltage substations. It cites estimates for the total cost of the development standing at some EUR 7 billion, rather than the initial EUR 2 billion.

Touted as the world’s first artificial energy island, Princess Elizabeth is currently under construction about 45 km (30 miles) off the coast by a Jan De Nul joint venture. It will bring energy from the new offshore wind farms to the Elia onshore grid and will also serve as a future connection between Belgium, the UK and Denmark by means of additional interconnectors.

The energy island, being built from concrete caissons filled with sand to form its contours, will collect and transmit electricity generated by the 3.5-GW Princess Elisabeth wind zone. The installation phase is due to be finalised in 2027.

The project is in line with the REPowerEU initiative, which aims to reduce Europe’s reliance on fossil fuel imports and accelerate the energy transition. A loan of EUR 100 million for its execution is being provided under the European Recovery and Resilience Facility.

(EUR 1.0 = USD 1.080)

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