Belgian high-voltage grid operator Elia has announced a temporary postponement of contract signings for key infrastructure components of the Princess Elisabeth Energy Island, an ambitious offshore wind project in the North Sea.
The delay is primarily due to soaring costs in the high-voltage direct current (HVDC) sector, which now accounts for half of the project’s revised €7.5 billion budget. Despite the setbacks, Elia confirmed that construction of the artificial island’s foundations and HVAC equipment remains on schedule, allowing two of the three offshore wind farms (700 MW + 1,400 MW) to move forward.
Elia explained that a recent international tender for HVDC components revealed a tight global supply chain, driving unexpected price increases.
"Although the tariff conditions of the supplier concerned are comparable to those applicable to other European grid operators, they are, despite our efforts, much higher than our initial projections," the company said in a statement.
The HVDC components are essential to connecting the third wind farm (1,400 MW) and supporting a hybrid interconnection with the UK as part of the Nautilus project. However, due to the significant cost overruns, Elia is now re-evaluating its approach.
Elia emphasized that it is executing a government-mandated policy and that it would be inappropriate to make unilateral decisions without broader political backing.
"Given these exceptional market circumstances, we believe it is necessary to seek additional government support before proceeding," Elia stated.
The company will now present alternative solutions to the Belgian government, which may require adjustments to the ministerial decree governing the offshore network and revisions to the Federal Development Plan.
What’s Next?
- Wind Farm Construction Continues: The first two offshore wind farms (700 MW + 1,400 MW) will proceed as planned.
- Third Wind Farm and UK Interconnection Face Delays: HVDC component costs need to be reassessed, and additional government backing is required before proceeding.
- Policy Adjustments Likely: The Belgian government may need to revise key energy policies to align with the rising project costs.
As Elia navigates these financial and logistical challenges, the future of Belgium’s landmark offshore energy hub remains uncertain, with further government intervention likely required to keep the project on track.
