The new CEO of Elia, Belgium's electricity grid operator, has said he is "concerned" about the cost of the Princess Elisabeth energy island which the company wants to build off the Belgian coast.
The energy island is intended to transport electricity produced by new offshore wind farms to land, but also to connect Belgium to wind farms installed elsewhere in the North Sea.
However, the estimated cost of the infrastructure project has skyrocketed in recent years. From €2.2 billion in 2021, the estimated price now stands at €7 billion. This is particularly due to the direct current component, which has become much more expensive. Elia has therefore suspended the signing of contracts concerning direct current.
The Belgian high-voltage company appointed Bernard Gustin as the new CEO on Friday. Gustin said that as a "responsible company", Elia is "concerned about the costs".
"But we must also look to the long term, we must not regret our decision in ten years," he said.
The grid operator has always defended the current design of the island, stressing the benefit of revenues and profits generated in the long term by the infrastructure project.
The construction site of the Princess Elisabeth energy island. Credit: Belga / Dirk Waem
According to Gustin, Elia should decide on the new design of the island in the first quarter of 2025. An audit of the design and costs is underway, as well as a study by the Electricity and Gas Regulatory Commission (Creg).
Gustin also expressed his desire to geographically diversify Elia's activities.
"We are already an international group, but the energy transition is broader than Belgium and Germany. I think the United States remains interesting for Elia. We have unique know-how that we can assert in a developing market," he said.
Gustin is the current chair of Elia, and will take over as CEO from 15 January. He succeeds Chris Peeters, who left Elia for Bpost more than a year ago.
Acting CEO and CFO Catherine Vandenborre is leaving the company, and the new CFO will be Marco Nix, who joins from German subsidiary 50Hertz.
Gustin has been an independent director and chair of Elia Group since 2017. He is well known for his role as CEO of Brussels Airlines from 2012 to 2018. Since 2022, he has also served as executive chair of freight rail operator Lineas, a position he will retain.
The group's current vice-chair, Geert Versnick, will temporarily take over as chair of Elia.
