The European Investment Bank (EIB) has approved a €1 billion credit facility for Elia Transmission Belgium to fund the development of the Princess Elisabeth Energy Island, marking the largest loan ever granted by the EIB for an energy infrastructure project in the Benelux region.
The financing builds on a previous €650 million green credit facility provided by the EIB in 2024 for the project’s initial phase. The funds will support the installation of the high-voltage (220 kV) artificial island substation, 66 kV switching stations, electrical transformers, and six three-phase alternating current subsea cable connections to the onshore transmission grid.
The milestone follows the recent installation of the 23rd and final foundation caisson, completing the main structural phase of the energy hub. Situated off the Belgian coast, the island will unlock new generation capacity from the Princess Elisabeth offshore wind zone and serve as a landing point for a planned interconnector with the United Kingdom.
Key technical and operational details include:
- Grid Integration & Infrastructure: The island will process power from future wind developments, transmitting electricity to the mainland through high-voltage alternating current (AC) infrastructure.
- Timeline to Operations: Construction will continue on structural elements, electrical systems, and subsea cables, with initial offshore wind farm connections scheduled to begin operating from 2031 onwards.
- Economic & Market Impact: Favourable loan terms are designed to minimize overall project financing costs, reducing capital expenditures passed on to domestic electricity consumers while expanding cross-border grid integration.
Robert de Groot, Vice-President of the European Investment Bank, stated: “Energy prices are a major concern for citizens, and a key reason for the EIB to invest in a better integrated and more resilient European energy system. Connecting more offshore wind power and expanding the capacity of the grid will help to create a more stable market. This needs large investments, and we’re happy to support Elia in taking a leading role in making this happen.”
Frédéric Dunon, Chief Executive Officer of Elia Transmission Belgium, added: “The transition to a low-carbon economy requires bold investments in infrastructure that can connect tomorrow’s clean electricity to homes, businesses and industry. The Princess Elisabeth Island is a strategic project that will help unlock the next generation of offshore wind capacity, strengthen energy security and support Europe’s competitiveness. The support of the European Investment Bank is a strong endorsement of the project’s long-term value and of the shared ambition to build a more sustainable, resilient and affordable energy system for Belgium and Europe.”
Jean-Luc Crucke, Belgian Minister of Climate, Ecological Transition, and Mobility, commented: “To accelerate the transition to a climate-neutral economy and progressively eliminate our dependence on fossil fuels, we need a substantial increase in low-carbon electricity production, accompanied by major investments in electricity infrastructure. Developing the assets required for widespread electrification will strengthen our energy sovereignty while leveraging Belgium’s internationally recognized know-how and expertise.”
