The European Investment Bank (EIB) has granted Elia Transmission Belgium a €1 billion credit facility on favourable terms for the Princess Elisabeth Energy Island. These favourable financing conditions help limit the project’s financing costs. The strategic energy project will unlock new Belgian offshore wind capacity and enable a future electricity interconnector with the United Kingdom. In addition to bolstering Belgium’s energy security, the energy island will strengthen integration into the European electricity market by serving as a focal point for existing and new offshore wind energy.
The announcement follows thorough optimisation of the project’s design and comes just weeks after the successful installation of the 23rd and final foundation element, marking the completion of a crucial phase in the island’s construction. The loan, the largest ever granted by the EIB to an energy infrastructure project in the Benelux, will cover, among other things, the high-voltage substation on the island, the transformers and the alternating current (AC) connections to the mainland. The project made its first drawdown under the green facility around the end of July. This financing builds on the European Investment Bank’s earlier support for the Princess Elisabeth Island project, following the €650 million green credit facility granted in 2024 for the project’s first phase. These favourable financing conditions help lower the project’s financing costs, reducing the impact on Belgian consumers while supporting a secure and more sustainable energy system.
The energy island is set to unlock Belgium’s second offshore wind zone, also named for Princess Elisabeth, and will also provide an opportunity to increase cross-border electricity exchange between European countries. It will thus contribute to a more integrated European electricity market, reduce reliance on imported fossil fuels and support the development of a more competitive European energy system. As an innovative, first-of-its-kind construction, the project also aligns with TechEU objectives.
The funding will cover, among other things, the high-voltage (220 kV) substation on the island, the 66kV switching stations, the transformers and the alternating current (AC) connections to the mainland. Electricity will be transported from the island to the shore via 6 three-phase alternating current 220 kV cables between the energy island and the onshore 220 kV substation.
Over the coming years, work on the island’s structure, cable connections and electrical installations will continue, preparing the island for the connection of the first offshore wind farms in the Princess Elisabeth Zone from 2031 onwards.
Original announcement: EIB
Image source: Courtesy of EIB
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