General – Princess Elisabeth Island
Due to the price increase for high-voltage direct current (HVDC) infrastructure, Elia Transmission Belgium (ETB) is temporarily postponing the signing of the final contracts for Princess Elisabeth Island.
Postponing the signing of the contracts is not without consequences but provides extra time to weigh the current design against alternative concepts in the changing market context.
These alternatives are also feasible but require a joint action plan with all the parties involved, as there are currently too many uncertainties both in policy and regulation. Given the strategic importance of the Belgian energy island and its crucial role in the country’s electricity supply in the coming decades, Elia wishes to keep all options open by postponing the signing.
The government bodies involved now have more time to make a final decision and possibly take additional measures.
Princess Elisabeth Island is one of the most important projects in the Federal Development Plan for the Belgian high-voltage grid, which was approved by the federal government in 2023.
Elia is carrying out this project within a legal framework but is not indifferent to growing concerns about the increased cost of HVDC technology. Meanwhile, the construction of the artificial island (foundations) and the implementation of the already-signed alternating current (HVAC) contracts remain on track.
To connect the third wind farm (1,400 MW), Elia is currently negotiating for two HVDC converters (one on the island and one on the Belgian coast). These converters must, in addition to connecting this wind farm, also enable the development of a hybrid interconnector to the UK (Nautilus project).
The international tender that Elia has set up for these direct current components shows an overheated supply chain with significant price increases. Although the terms from the supplier involved are comparable to those of other European grid operators, they are – despite our efforts – much higher than our initial estimates.
This significant cost increase – specific to HVDC – is due to scarcity, combined with the rise in material costs and inflation. Elia does not experience this to the same extent for other ongoing investment projects.
As choosing between the reference scenario and alternatives takes time, Elia will not sign the HVDC contracts for the Belgian energy island for the time being. This gives the authorities more time to weigh the different options and take additional measures.
As Elia will not be awarding the negotiated HVDC contract in February 2025, the HVDC converters will not be built to the original schedule. It will be up to the government to confirm or revise the reference concept. This is a strategic decision regarding Belgium’s electricity supply for the coming decades.
If the reference concept is chosen, the construction of the HVDC converters will be postponed to a date to be determined with the equipment manufacturers. The project’s overall lead time is estimated at around three years.
