European Investment Bank backs Princess Elisabeth Island with 650m euro green loan
Belgium’s high-voltage grid operator has secured a 650 million euro loan from the European Investment Bank (EIB) for the construction of Princess Elisabeth Island, an artificial energy island off the Belgian coast.
The loan agreement, signed on Friday, supports the project under the European Commission's REPowerEU programme, which aims to reduce Europe’s reliance on fossil fuel imports. Grid operator Elia had previously received nearly 100 million euros from the European recovery fund for this initiative.
The agreement was formalised in Vlissingen, the Netherlands, where Belgian dredging companies Deme and Jan De Nul are working on the island's foundations. Outgoing Belgian Energy minister Tinne Van der Straeten and diplomatic representatives from North Sea nations attended the signing.
Video showing drone images of the construction site of the future Princess Elisabeth Island in Vlissingen
© VIDEO BELGA HANDOUT ELIA
Princess Elisabeth Island, situated about 45km off Ostend, will be the world’s first artificial energy island to integrate direct and alternating currents. Scheduled for completion in 2027, it will bundle up to 3.5GW of electricity from the Princess Elisabeth wind zone. Additionally, it is set to serve as a future hub for hybrid interconnectors, enabling power exchanges with neighbouring countries.
“Princess Elisabeth Island is essential for Belgian and European security of supply and energy independence," said EIB vice president Robert de Groot. "It not only strengthens the Belgian energy infrastructure but also promotes the development of crucial interconnections with neighbouring countries, which benefits regional cooperation."
The cost of constructing the island has risen significantly, which could increase household and business energy bills. In response, Elia said the project remains the optimal solution from both technical and economic perspectives.
Construction site of the Princess Elisabeth energy island in Vlissingen © PHOTO BELGA PHOTO DIRK WAEM
Related news
