Elia Secures $1.1B EIB Loan for Princess Elisabeth Energy Island

Belgian transmission system operator Elia Transmission Belgium has secured a $1.15 billion (€1 billion) green credit facility from the European Investment Bank (EIB) to finance the second phase of the Princess Elisabeth Energy Island project in the North Sea.

The financing, the largest ever provided by the EIB to an energy infrastructure project in the Benelux, will cover infrastructure including the island's 220 kV high-voltage substation, 66 kV switching stations, transformers and alternating current connections to the Belgian mainland.

A first drawdown under the facility was made around the end of July.

The latest financing follows a $752.6 million (€650 million) green credit facility provided by the EIB in 2024 for the project's first phase and comes weeks after installation of the 23rd and final foundation element for the artificial island.

Located around 45 kilometers off the Belgian coast, Princess Elisabeth Island will serve as an energy hub connecting existing and new offshore wind generation to the Belgian electricity grid.

It will unlock the country's second offshore wind zone, the Princess Elisabeth Zone, and provide an opportunity for a future electricity interconnector with the United Kingdom.

Electricity will be transported from the island to shore through six three-phase 220 kV AC cables connected to the onshore 220 kV substation.

Work on the island structure, cable connections and electrical installations will continue over the coming years, with the first offshore wind farms in the Princess Elisabeth Zone expected to connect from 2031 onwards.

“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,” said Frédéric Dunon, CEO of Elia Transmission Belgium.