EIB Grants €1 Billion Loan to Elia for Princess Elisabeth Energy Island

The European Investment Bank (EIB) has finalized a €1 billion green credit line with Elia Transmission Belgium, the Belgian transmission system operator, to finance the electrical infrastructure for Phase 2 of the Princess Elisabeth Island project in the North Sea. Officially signed on July 17, the financing stands as the largest single loan ever issued by the EIB for energy infrastructure in the Benelux region.

Here is the math. The total investment for this second phase is estimated by the EIB at approximately €2.296 billion. This fresh capital infusion follows an earlier €650 million green credit line issued by the bank in 2024 for the initial phase, bringing the EIB’s total financial commitment to the artificial energy island to €1.65 billion.

The Bottom Line

• Record Financing: The €1 billion facility represents the largest EIB single loan for energy infrastructure across the Benelux nations.
• Cumulative Support: Combined with a €650 million loan granted in 2024, total EIB backing for the Princess Elisabeth Island project now reaches €1.65 billion against a Phase 2 investment scope of roughly €2.296 billion.
• Operational Timeline: Construction plans target the integration of the first wind parks within the Princess Elisabeth zone starting in 2031.

Infrastructure Scope and Technical Specifications

Located roughly 45 kilometers off the Belgian coast, the Princess Elisabeth Island functions as a specialized offshore transmission hub. It is engineered to consolidate power generation from the surrounding offshore wind zone while providing dedicated capacity for future cross-border interconnectors.

The scope funded by the latest EIB capital includes a 220-kilovolt (kV) offshore high-voltage substation, 66-kV switchgear, 220/66-kV transformers, and an alternating current transmission system linking the island directly to the Belgian mainland grid. To achieve this integration, project developers are laying six three-phase 220-kV AC cables between the island and the land-based substation.

Physical progress on the site is advancing according to technical blueprints. Recent operations marked the installation of the 23rd and final caisson, completing the primary concrete substructure of the artificial island. Environmental authorization for the initiative was originally secured on September 26, 2023.

Capital Deployment and Market Context

According to project documentation from the EIB, the first tranche of the €1 billion credit line was drawn down at the end of July.

Project Phase	EIB Financial Backing	Estimated Total Cost	Core Infrastructure Scope
Phase 1	€650 million (Issued 2024)	Not separately itemized	Initial civil engineering and structural foundation
Phase 2	€1 billion (Signed July 17)	€2.296 billion	220-kV substation, 66-kV switchgear, transformers, 6 AC cables
Total	€1.65 billion	Multi-billion scale	Complete offshore transmission node for Princess Elisabeth zone

While the current financing scope secures domestic grid integration and wind zone consolidation, project plans leave room for future international interconnectors. The physical layout accommodates prospective links between Belgium and neighboring markets such as the United Kingdom, though those specific cross-border assets fall outside the confirmed construction parameters of this €1 billion facility.

The Road to 2031

With the final caisson now in place, the immediate operational focus shifts to internal structural outfitting, extensive seabed cable laying, and the assembly of heavy electrical machinery on the platform. Current scheduling by the network operator aims for full operational readiness by 2031, the target window for connecting the first commercial wind farms.

Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.