Elia secures €1 billion loan for second phase of Princess Elisabeth Island energy island

en.Wedoany.com Reported - On September 7, the European Investment Bank announced that it has provided Elia Transmission Belgium, Belgium's transmission system operator, with a €1 billion green credit line for the second phase of electrical infrastructure construction on the Princess Elisabeth Island in the North Sea. According to the European Investment Bank's project documents, the financing was officially signed on July 17, with the first drawdown completed at the end of July; this is the largest single loan the European Investment Bank has ever provided for an energy infrastructure project in the Benelux region.

This €1 billion financing corresponds to the second phase of the energy island project, for which the European Investment Bank estimates a total investment of approximately €2.296 billion. The scope of construction includes a 220 kV high-voltage substation, 66 kV switchgear facilities, 220/66 kV transformers on the island, as well as an AC transmission system connecting to Belgium's mainland grid. Between the island and the onshore 220 kV substation, six three-phase 220 kV AC cables will be laid to transmit offshore wind power to the mainland.

The Princess Elisabeth Energy Island is located in the North Sea approximately 45 kilometers off the Belgian coast. It will serve as an offshore transmission hub connecting to the Princess Elisabeth offshore wind zone, with provisions reserved for future cross-border electricity interconnection. The project's environmental permit was approved on September 26, 2023. Construction of the island's artificial structure recently completed the installation of the 23rd and final caisson, and subsequent works will continue with the island structure, subsea cable connections, and on-island electrical facility construction.

This is not the first time the European Investment Bank has provided financing for the energy island. In 2024, the bank provided a €650 million green credit line for the first phase of the project; this new €1 billion financing primarily covers the second phase of electrical infrastructure. The European Investment Bank's combined financing for the two phases totals €1.65 billion.

According to the current construction schedule, the energy island will continue structural, cable, and electrical equipment works over the coming years, with the goal of connecting the first wind farms in the Princess Elisabeth offshore wind zone from 2031. The project also has the potential to accommodate future power interconnection lines between Belgium and countries such as the United Kingdom, although such cross-border interconnection projects are not part of the confirmed scope of construction under this €1 billion loan.