The European Investment Bank (EIB) has granted Elia Transmission Belgium a credit facility of €1 billion 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 UK. As well as bolstering Belgium's energy security, the energy island will strengthen the integration of the European electricity market, by serving as a focal point for existing and new offshore wind energy.
The announcement follows a thorough optimisation of the design of the project and comes just weeks after the 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. A first draw-down under the green facility was made 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. Being an innovative and first-of-its-kind construction, the project also aligns with TechEU objectives.
“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.” said EIB Vice President, Robert de Groot. “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.
“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,” added Frédéric Dunon, CEO of Elia Transmission Belgium.
“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 recognised know-how and expertise,” commented Jean-Luc Crucke, Belgian Minister of Climate & Ecological Transition and Mobility.
The funding will cover, among other things, the high-voltage (220 kV) substation on the island, the 66 kV switching stations, the transformers and the AC connections to the mainland. Electricity transport from the island to the shore will happen via six 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.
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