Elia Transmission Belgium has obtained a $1.16bn (€1bn) green credit facility from the European Investment Bank (EIB) for the 3.5GW Princess Elisabeth Energy Island project in the North Sea.
The loan will help finance the next phase of the artificial island’s development, supporting efforts to expand Belgium’s offshore wind capacity and improve European electricity market integration.
The energy island is located approximately 45km off the Belgian coast and is designed to serve as a hub, connecting both existing and future offshore wind generation to the national power grid.
It is also expected to facilitate a planned electricity interconnector with the UK, enhancing cross-border electricity exchange and contributing to energy security in Belgium and neighbouring countries.
EIB vice-president Robert de Groot said: “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 are happy to support Elia in taking a leading role in making this happen.”
According to Elia, the credit facility provides favourable financing conditions that are expected to limit overall project costs and reduce the impact on consumers.
The agreement follows a €650m green loan from the EIB in 2024, which supported the project’s initial phase.
Elia Transmission Belgium CEO Frédéric Dunon said: “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.”
Work on Princess Elisabeth Island is ongoing, with the recent installation of its 23rd foundation element.
The new financing will cover construction of high-voltage substations, transformers and alternating current connections linking the island to the mainland.
Six three-phase alternating current 220kV cables will transport electricity from the island to the onshore 220kV substation.
The project is set to facilitate the connection of new offshore wind farms in the Princess Elisabeth Zone from 2031 onwards.
Continued construction will focus on finalising the island’s structure, cable systems and electrical installations in preparation for expanded offshore wind integration.
