Elia Transmission Belgium has secured a €1 billion green credit facility from the European Investment Bank to help fund the second phase of the Princess Elisabeth artificial energy island in the North Sea.
The island is being built about 45 kilometres off the Belgian coast and is designed to act as a hub that connects offshore wind farms to Belgium’s electricity grid, the EIB announced on Monday.
The EIB said the financing includes “favourable terms” intended to limit the project’s financing costs, and follows a redesign of the project.
Construction recently reached a milestone with the installation of the 23rd and final foundation element, completing a key phase of building work.
The lender said the facility will help pay for electrical equipment on the island, including a high-voltage substation, transformers and alternating current connections to the mainland.
A first drawdown under the facility was made around the end of July.
Offshore wind hub and potential UK link
The project is expected to enable development of Belgium’s second offshore wind zone, also called Princess Elisabeth, and provide an option for a future electricity interconnector with the United Kingdom, the EIB said.
The new facility follows a €650 million green credit facility agreed in 2024 for the project’s first phase.
EIB Vice-President Robert de Groot said energy prices were “a major concern for citizens” and that connecting more offshore wind power and expanding grid capacity required large investments.
Elia Transmission Belgium chief executive Frédéric Dunon said the project would help connect future clean electricity generation to homes and businesses.
Further work on the island’s structure, cable connections and electrical installations is due to continue in the coming years, with the first offshore wind farms in the Princess Elisabeth Zone expected to be connected from 2031 onwards.
