Elia Transmission Belgium has finalized a €1 billion green credit facility from the European Investment Bank (EIB). This financial commitment is earmarked for the second phase of the Princess Elisabeth Energy Island, representing the largest loan ever issued by the European Investment Bank for an energy infrastructure project within the Benelux region. The capital will support the development of high-voltage substations, essential transformers, and the alternating-current connections to the Belgian mainland. Elia made an initial drawdown from the facility around the end of July 2026.
Expanding Renewable Energy Hub Potential
The Princess Elisabeth Energy Island, an artificial island, situated approximately 45 kilometers off the Belgian coastline will become a hub for offshore electricity. Its design facilitates the collection of power from wind farms situated within the Princess Elisabeth offshore zone. Furthermore, the project establishes the necessary infrastructure for a potential future electricity interconnector with the United Kingdom.
Belgium is currently working toward a target of 3.15 to 3.5 gigawatts of additional wind capacity in the Princess Elisabeth Zone. Given that the country currently operates roughly 2.26 gigawatts of offshore wind capacity, this development is set to more than double the offshore wind fleet.
Project Progress and Infrastructure Development
- Financial History: This new loan follows a previous €650 million green credit agreement established with the European Investment Bank in October 2024 for the first phase of the project.
- Construction Milestones: The installation of the 23rd and final foundation element for the structure was completed recently.
- Operational Outlook: Construction of subsea cables, mainland connections, and electrical equipment is ongoing, with initial links to wind farms scheduled for 2031.
While the Belgian government continues to refine the tender framework for the Princess Elisabeth I wind farm following the cancellation of the initial tender in July 2025, the island itself remains a central component of national energy strategy. The project aligns with broader regional objectives to transform the North Sea into a highly integrated power system. The Princess Elisabeth Energy Island initiative aims to make electricity trade between Eurpean markets more efficient while reducing dependnece on imported fuels.
