Elia presses pause button to halve energy island costs

Princess Elisabeth Energy Island’s estimated costs in the North Sea doubled to 7.5 billion euros instead of the original 2.2 billion when Energy Minister Tinne Van der Straeten (Green) launched the plan. This has led to criticism from the business world and raised questions in parliament about the costs and financial consequences for families and companies. 

That is why Elia, the Belgian high-voltage grid operator, recommends postponing the most expensive part of the project. This should allay concerns about the significantly increased costs of the energy island.

Direct current infrastructure

In concrete terms, this concerns the direct current infrastructure of the energy island that connects the United Kingdom with our country and runs via Princess Elisabeth Island, which accounts for half of the budget: 3.75 billion euros.

The conversion station on the energy island, in particular, costs a lot of money. So, the cable to England will not be built, and a third large wind farm will not be possible either.

‘Equivalent alternatives’

Elia will now study “equivalent alternatives” to the current design that are cheaper, such as a direct submarine high-voltage cable between the United Kingdom and our country. However, although alternative scenarios are more affordable, they also have more risks, including permits and timing.

The grid operator negotiates with the supplier to extend the conditions for that contract. However, if it were delayed, Elia would lose the ‘slot’ with those suppliers, and the project would end up at the back of the queue again.

That would mean at least a 3-year delay. However, developing an alternative solution would also mean delays, which could impact the security of supply in the next decade.

Vital energy hub

To be clear, the island’s construction is not being questioned or postponed. The project’s strategic value and ambition to turn the North Sea into an important energy hub remain intact. “The energy island will be created. The only question is when and at what price,” says Elia CEO Bernard Gustin.

According to resigning Minister of Energy Tinne Van der Straeten (Green), the supplier of the direct current part of the energy island appears to be charging excessive costs. She demanded Elia to restart the tender procedure and called on the European Commission to investigate the suppliers.

Princess Elisabeth Island

Just a reminder: 45 kilometers off the Belgian coast, a six-hectare artificial island is being built that aims to connect power cables from surrounding wind zones, existing and new, with a cable connecting Belgium with the United Kingdom.

Princess Elisabeth Island will become an energy hub for cables to neighboring countries and new offshore wind farms in the North Sea. It will be a connection point for three offshore wind farms to be built by 2030 and new submarine cables to the United Kingdom or other North Sea countries.

During the tender more than two years ago, the shell of the island, the cable infrastructure, and onshore connections were estimated at around 2 billion euros. In the meantime, the investment budget is expected to increase to 7.5 billion euros.

The Dutch and the Danes, who also dreamed of energy islands, have put their projects on hold for much longer.