€1 Billion EIB Loan Powers Belgium’s Offshore Energy Island

The agreement represents the largest loan the EIB has ever provided for an energy infrastructure project in the Benelux.

Belgium's plan to turn the North Sea into a major source of clean electricity has secured fresh financial backing, with the European Investment Bank granting Elia Transmission Belgium a €1 billion green credit facility for the Princess Elisabeth Energy Island. The favourable loan conditions are expected to reduce financing costs and limit the project's impact on electricity bills, while supporting an infrastructure hub designed to bring new offshore wind power into Belgian homes, businesses and industries.

The agreement represents the largest loan the EIB has ever provided for an energy infrastructure project in the Benelux. It follows a €650 million green credit facility granted in 2024 for the first phase of the development, taking the bank's total approved support for the artificial energy island to €1.65 billion. Elia made the first drawdown from the latest facility around the end of July.

Construction Reaches a Major Milestone in the North Sea

The financing announcement comes shortly after workers successfully installed the 23rd and final foundation element, completing a crucial stage in the island's construction. Work will now continue on its structure, undersea cable connections and electrical equipment as Belgium prepares to connect the first wind farms in the Princess Elisabeth offshore zone from 2031.

The new funding will cover key parts of the island's electricity network, including a 220 kV high-voltage substation, 66 kV switching stations, transformers and alternating current connections to the Belgian mainland. Six three-phase 220 kV alternating current cables will carry electricity from the island to an onshore substation, allowing renewable power generated far out at sea to enter the national grid.

A Gateway for Offshore Wind and Cross-Border Electricity

Princess Elisabeth Energy Island will unlock Belgium's second offshore wind zone and create a central connection point for existing and future wind farms in the North Sea. The development is also designed to support a future electricity interconnector with the United Kingdom, opening another route for renewable electricity to move between European countries according to demand and supply.

A stronger interconnected grid can help stabilise electricity markets, improve energy security and reduce dependence on imported fossil fuels. Greater access to offshore wind power could also support industries seeking dependable low-carbon electricity as Europe expands electrification across transport, manufacturing, heating and other parts of the economy.

EIB Vice-President Robert de Groot said energy prices remain a major concern for citizens, making investment in a more resilient and integrated European energy system increasingly important. He noted that connecting additional offshore wind capacity and expanding the grid could contribute to a more stable market, while recognising that such progress requires investment on a very large scale.

Building a Cleaner and More Secure Energy System

Elia Transmission Belgium CEO Frédéric Dunon described the island as a strategic project that will connect the next generation of clean electricity to homes, businesses and industry. He said the EIB's support reflects confidence in the development's lasting value and in the shared vision of a sustainable, resilient and affordable energy system for Belgium and Europe.

Belgian Minister of Climate, Ecological Transition and Mobility Jean-Luc Crucke stressed that climate neutrality and lower fossil-fuel dependence require both increased low-carbon electricity production and major investment in transmission infrastructure. Building these assets can strengthen Belgium's energy sovereignty while drawing on the country's internationally recognised offshore engineering and electricity-sector expertise.

As a first-of-its-kind development, Princess Elisabeth Energy Island also fits the objectives of the EIB's TechEU programme, which supports European innovation and technological capacity. Its progress could offer valuable lessons for other countries exploring offshore energy hubs as tools for connecting wind farms, national grids and cross-border electricity markets.