EU greenlights Belgian ‘auction’ of new offshore wind farms

The European Commission has approved Belgium’s state aid mechanism of 682 million euros, paving the way for auctioning the first wind farm in the Princess Elisabeth zone in the North Sea. This auction, planned on October 28th, marks a crucial step toward the country’s energy independence and climate neutrality.

Wind farm developers will be invited to bid during an auction. The maximum price is 95 euros per megawatt-hour (MWh). If electricity prices on the market are lower, the government will make adjustments to ensure operators have a guaranteed price. At higher prices, the developer will refund the difference—those who are satisfied with a lower price score better points at the auction.

Energy transition

Citizen participation will also be mandatory, ensuring that Belgians benefit directly from the transition through investment returns via renewable energy communities.

“Locally produced, affordable renewable energy will protect us from extreme price volatility and is an essential weapon in the fight against climate change,” said Flemish Minister Tinne Van der Straetren (Groen). “With the approval of the European Commission, Belgium is ready to make a significant leap in the energy transition.”

Princess Elisabeth Energy Island

The first wind farm in the Princess Elisabeth zone should be operational by the end of 2028. By 2030, the North Sea wind farms will generate enough electricity to power every Belgian household and help reduce CO2 emissions by 8.6 million tons annually.

The Princess Elisabeth Energy Island will play a key role in developing Belgium’s second offshore wind zone. Located 45 km off the Belgian coast, it is the world’s first artificial energy island. It will connect offshore wind farms to the mainland and be a landing point for future hybrid interconnections.

Princess Elisabeth Island, a world first, is an artificial island 45 km from the Belgian coast. It is an extension of the electricity grid in the North Sea, connecting the offshore wind farms with the mainland and establishing new connections abroad, such as Denmark and the United Kingdom.