Explosion of costs for the Belgian energy island in the North Sea

Located approximately 45 kilometers from the Belgian coast, the artificial island named “Princess Elisabeth” is a major initiative in Belgium’s energy transition. This project covers six hectares and brings together facilities for transporting electricity from several offshore wind farms. With the integration of transformers and submarine cables, this platform must serve as an “electric hub” to transport power to Belgium and its European neighbors. Launched in 2021, this project is seen as a key step in reducing Belgian dependence on fossil fuels.

The Belgian government plans to install offshore wind farms with a capacity of 3.5 gigawatts (GW), sufficient power to cover almost 30% of national energy needs and power all Belgian homes. However, the scale of the project and its ecological ambitions come up against an unprecedented surge in costs. Initially estimated at 2.2 billion euros, the budget of Princess Elisabeth Island was recently reassessed to 7 billion euros, a tripling that alarms political decision-makers and industrial players.

Complex financial and geopolitical reasons

Belgian Energy Minister Tinne Van der Straeten expressed concern about the soaring costs. According to her, the conflict in Ukraine and European dependence on Russian gas have indirectly caused a rise in the prices of equipment and materials needed for the project. “In all countries, we want to buy the same equipment: cables, AC/DC converters for electricity and even access to ships,” said Frédéric Dunon, CEO of Elia Transmission Belgium, the company in charge of the project. .

These constraints also led to delays in setting up the site. The costs of materials and the complex logistics surrounding the construction of this island in the open sea forced Elia to review its initial budget and seek financial support from the European Investment Bank, which granted a loan of 650 million euros to contribute to the financing of the project.

Impact on consumers and political debate

The Belgian industrial sector, the main energy consumer, fears that budget overruns will lead to an increase in electricity bills. Some voices among industrialists and economists question the economic viability of the project and call for a revision of its initial objectives. Furthermore, environmental NGOs and green parties continue to support the project, emphasizing its positive impacts for marine biodiversity, in particular with the installation of an artificial reef and protection measures for seabirds.

Despite this support, European funding may not be enough to fill the budget deficit, and concerns arise about the ability of the future Belgian government to support such an investment in the current context of budgetary austerity.

An essential project in the face of climate uncertainties

Princess Elisabeth Island is part of the European strategy aiming to achieve 42.5% renewable energy by 2030. Faced with the rise of the extreme right in Europe and climate-sceptical speeches, the achievement of this This artificial island has a symbolic dimension for environmentalists, who fear a return to fossil fuels if the project were to be interrupted.

Minister Van der Straeten insists on the need to carry out “transformative projects” for the energy future of the European Union. She emphasizes that large-scale infrastructure investments are essential to achieving carbon neutrality objectives. The debate on the sustainability of this project in the North Sea therefore extends beyond Belgium, highlighting the financial and political challenges faced by large-scale ecological initiatives in Europe.

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