World's first energy island is here

Forty-five kilometres off the Belgian coastline, a concrete ring now marks the emergence of what developers are calling the world's first artificial energy island. Situated in the North Sea, the island, dubbed the Princess Elisabeth Island, is set to become a hub for offshore wind energy. The European Investment Bank (EIB) has confirmed a substantial €1 billion green credit facility to support the electrical infrastructure of the island's second phase.

Signed on July 17 and officially announced in early September, this loan represents the largest single loan ever granted by the EIB for energy infrastructure in the Benelux region.

The island is not designed for human habitation or conservation purposes, although it will feature a small harbor for maintenance crews and a helideck. Its primary function is to serve as a switchboard, gathering electricity generated by future offshore wind farms and transmitting it to the mainland via submarine cables.

The island's construction was a collaborative effort led by Elia Transmission Belgium, with TM Edison, a consortium of Belgian engineering firms DEME and Jan De Nul, responsible for the installation of the 23 caissons that form the foundation of the island. Each caisson measures approximately 58 meters in length and 28 meters in width, rising up to 32 meters high, and weighs around 22,000 tonnes.

These massive structures were fabricated at a production line in Vlissingen, Netherlands, with each unit taking about three months to complete. They were carefully positioned and filled with sand on the seabed to ensure stable placement.

The installation process spanned from April 2025 to December 2026, with seasonal pauses due to stormy weather. Once completed, the interior of the ring will undergo land reclamation using sand, ultimately transforming the island into a landmass. Throughout the project, environmental considerations were paramount. Elia and partners collaborated with marine conservation specialists to design the outer walls with protrusions for seabirds known as kittiwakes to roost and breed.

Submerged structures were also integrated to support marine life, including provisions for European flat oysters.

The island's role in the energy ecosystem is straightforward but crucial. It will collect power from wind farms planned for the Princess Elisabeth Zone, a 285-square-kilometre area designated for up to 3.5 GW of offshore wind capacity. Initially, the design incorporated both alternating current (AC) and high-voltage direct current (HVDC) systems, an innovative combination.

However, in June 2025, Belgian Energy Minister Mathieu Bihet announced a shift to AC-only connections, citing technical, economic, and legal advantages, along with industry analysis questioning the necessity of HVDC over shorter distances. This decision effectively curtails the island's capacity to connect with international interconnectors, Nautilus to the United Kingdom and TritonLink to Denmark, thus concentrating on 60% of the planned wind farms, totaling 2,100 MW.

The financial landscape of the Princess Elisabeth Zone project underwent significant changes. The initial budget of approximately €3.6 billion escalated to between €7 billion and €8 billion, primarily driven by HVDC equipment costs exacerbated by inflation, supply chain issues, and market overheating. In February 2025, Elia postponed HVDC contract signings to negotiate more favorable terms.

The EIB subsequently increased its financing from €650 million in October 2024 to €1.65 billion, covering phase two of the project, which includes a 220 kV offshore substation, 66 kV switchgear, transformers, and six three-phase 220 kV cables leading to an onshore substation. The EIB's support now totals €1.65 billion, with an additional €99 million EU subsidy for construction phases.

Completion of the island is anticipated around 2031, coinciding with the expected connection of the first offshore wind farm. Following the island's operational readiness, the Ventilus and Boucle du Hainaut projects will transport the generated power to end consumers via onshore infrastructure. However, the tender for the initial Princess Elisabeth Zone I site remains pending, postponed by the Belgian Council of Ministers to 2026, leaving certain aspects of the project's timeline unresolved.