The European Investment Bank (EIB) has extended a €650 million loan to Belgium's high-voltage grid operator Elia for the construction of Princess Elisabeth Island, an artificial energy island off the Belgian coast.
This European credit comes from the European Commission’s REPowerEU programme, aimed at reducing Europe’s dependence on fossil fuel imports.
The agreement between Elia and the EIB was signed on Friday in Vlissingen, Netherlands, where Belgian dredging firms Deme and Jan De Nul are building the island’s foundations.
Large industrial electricity consumers have called for a halt to construction due to rising project costs but Elia maintains that the energy island remains the best technical and economic option.
The major power project has international significance and is central to the plans to make the North Sea "Europe's Green Power Plant". A declaration to this effect was signed by Prime Minister Alexander De Croo, European Commission president Ursula Von der Leyen and Chancellor of Germany Olaf Scholz. Ostende, 24 April 2023. Credit: Belga
Princess Elisabeth Island will be the world’s first artificial energy island combining direct current and alternating current. Located about 45 kilometres off Ostend, construction is expected to last until 2027.
The island’s high-voltage infrastructure will consolidate electricity generated by wind farms in the Princess Elisabeth zone—up to 3.5 gigawatts—and serve as a hub for future hybrid interconnectors facilitating electricity trade with other countries.
"Princess Elisabeth Island is crucial for Belgium and Europe’s energy security and independence," emphasised EIB Vice-President Robert de Groot. "It strengthens Belgium’s energy infrastructure and promotes the development of vital interconnections with neighbouring countries, benefiting regional cooperation."
