The Federal Government has delayed its decision on the second phase of the North Sea energy island project, the Federal Energy Minister Mathieu Bihet announced on Monday.
Due to the massive cost increase, now estimated at several billion euros, the government wants to continue exploring alternative scenarios and engaging in dialogue with stakeholders (CREG, DG Energy, and Elia) before committing. This particularly concerns the direct current infrastructure. The decision is expected in the coming weeks.
Elia is currently constructing the Princess Elisabeth offshore energy island, with its cost now ranging between €7 billion and €8 billion. This is a significant rise from the 2023 estimate of €3.6 billion and the 2021 estimate of €2.12 billion.
High inflation and market effects are driving this increase, according to the high-voltage grid operator. In early February, Elia decided to postpone signing the contract for the most expensive part, the direct current infrastructure.
"We are facing soaring costs and a lack of clarity on some past decisions," Bihet stated. "We want to avoid making hasty decisions that could have significant economic repercussions on citizens' bills and the competitiveness of our businesses."
Bihet emphasised the need to ensure an optimal cost-benefit ratio and that noted that not all options have yet been examined. "It is essential to consider all the options that can help achieve the government's objectives, such as the deployment of renewable energy in the North Sea or the development of low-carbon energy."
