The European Investment Bank (EIB) and Elia Transmission Belgium (ETB) have signed a €650 million green credit facility agreement, further broadening ETB’s financing portfolio and advancing Europe’s transition from fossil fuels to green energy. The proceeds are earmarked for the realization 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 centers on the mainland.
Significant contribution to energy security and European competitiveness, The contract was signed by EIB Vice-President Robert de Groot, ETB CEO Frédéric Dunon, and ELIA Group Interim CEO Catherine Vandenborre on 25 October 2024 at a ceremony held at the island’s caisson yard in Vlissingen (NL), in the presence of the Belgian Minister of Energy, Tinne Van der Straeten; the 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 German ambassador to Belgium.
The Princess Elisabeth Island will be constructed between 2024 and 2027, at about 45 km off the Belgian coast within the Princess Elisabeth wind zone. The island is one of ETB’s key projects and is the world’s first artificial energy island. By integrating 3.5 GW of additional offshore wind capacity into Belgium’s electricity grid (to power more than 3 million households), the Princess Elisabeth Island 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.
Strong support from European institutions
Promoting renewable energy, enhancing energy security, and fostering European interconnectedness are key for the European Union to reach its climate and energy goals. The EIB’s support highlights ETB’s leading role in connecting offshore wind capacity to Europe’s onshore grid and strengthening the integration of the European energy market.
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 that will link Belgium to its neighbours. Another important element for the EU bank 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.
“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.”
Robert de Groot, Vice President of the European Investment Bank
"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.”
Catherine Vandenborre, Elia Group’s interim CEO, Innovation to accelerate the energy transition The Princess Elisabeth Island will be the first artificial energy island in the world hosting both high-voltage direct current (HVDC) and alternating current (HVAC) infrastructure. The first of the island’s caissons, or foundations, are currently being built in Vlissingen (the Netherlands) and will soon be sunk at sea and filled with sand to form the foundations of the island.
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 that will link Belgium to the United Kingdom and other countries. These hybrid interconnectors will perform two functions at once, meaning that their design is more efficient than that of most current interconnectors. These hybrid interconnectors will enable power exchanges between Belgium and its neighbours whilst also being connected to large offshore wind farms in the North Sea. The latter will eventually supply Belgium with large quantities of renewable energy.
