Elia Transmission Belgium (ETB) has announced the cancellation of a contract for high-voltage direct current (HVDC) infrastructure linked to the Princess Elisabeth energy island project, citing what it called “unprecedented global increases” in equipment costs.
The decision follows a suspension of the contract earlier this year and aligns with the Belgian government’s aim to keep the project within its original cost parameters, ETB said in a statement.
“The decision taken by the government today aims to control the costs and optimise the investments associated with the development of the Princess Elisabeth energy hub,” the company stated.
Construction of the artificial island in the Belgian North Sea is continuing under previously signed alternating current (HVAC) contracts. These will enable the connection of two future offshore wind farms, with capacities of 700 megawatts (MW) and 1,400 MW, by the 2030s.
The island is also intended to serve as the landing point for the Nautilus project, a planned hybrid interconnector linking Belgium and the United Kingdom.
ETB said Belgian energy minister Mathieu Bihet has now mandated the company to develop “an alternative concept” for the next phase of the hub, which will include consideration of a second UK interconnection.
“We support the government’s ambition to realise the project’s core objectives through an optimised configuration which has adapted to current market conditions,” said ETB CEO Frederic Dunon. “We are pleased that the strategic importance of future offshore development and a second interconnector with the UK has been reaffirmed.”
The Princess Elisabeth island is part of Belgium’s broader strategy to expand offshore wind capacity and enhance cross-border electricity exchange as it moves towards a more integrated and resilient energy system.
