Princess Elisabeth Energy Island Proceeds Without HVDC
Belgium’s flagship Princess Elisabeth Energy Island will proceed without its high-voltage direct current (HVDC) component, following a government decision on the North Sea mega-project.
Energy Minister Mathieu Bihet announced the decision after a restricted cabinet meeting, citing a need to “maximise benefits and limit risks” for Belgian households and businesses. The direct current (DC) component—originally envisioned to connect future offshore wind farms and enable a hybrid interconnector with the United Kingdom—has been suspended, saving costs from a project whose total price tag had increased in recent years.
The decision follows months of reassessment by the Electricity and Gas Regulation Commission (Creg), DG Energy, and grid operator Elia, who identified “technically viable, economically advantageous, and legally sound” alternatives to the original plan. The construction of the artificial island itself and the high-voltage alternating current (HVAC) infrastructure will continue as planned, ensuring that two of the three new offshore wind farms in the Princess Elisabeth Zone can still be connected to the mainland grid.
Impact: Scaled Back Ambitions for Offshore Integration
The Princess Elisabeth Island, located 45 km off the Belgian coast, was designed as a pioneering offshore electricity hub, bundling wind farm cables and serving as a landing point for future inter-connectors with neighboring countries. The suspension of the HVDC component means:
- Only two of the three planned offshore wind farms (about 2.1 GW) will be connected via AC infrastructure, with the third (1.4 GW) on hold.
- The planned hybrid interconnector with the UK—part of the Nautilus project—will not proceed in its original form, though alternative interconnection options remain under consideration.
- The overall integration of offshore wind into Belgium’s grid will be reduced, and the ability to trade renewable energy with neighbors will be limited in the medium term.
Cost Drivers: HVDC Supply Chain Overheats
The HVDC component, intended to enable long-distance, high-capacity transmission and international interconnections, became an expensive element in the project. Elia’s tender process described an “overheated” global HVDC supply chain, with prices far exceeding initial estimates due to material shortages, inflation, and surging demand for green infrastructure across Europe. Industry analysis also questioned the technical necessity of HVDC for the relatively short distances involved, suggesting that AC connections would suffice at a much lower cost.
What’s Next for the Energy Island?
Construction of the island’s foundations and AC substations is already underway, with completion targeted for 2027 and full grid integration by 2030. The government and Elia will continue to explore alternative DC interconnection options, including a possible point-to-point Nautilus link, but any further expansion will depend on cost, regulatory clarity, and market conditions.
“Rather than pursuing a costly path, we choose to reconsider a project that would directly impact household purchasing power and business competitiveness,” said Minister Bihet.
European Context: Balancing Ambition and Affordability
Belgium’s decision reflects a broader trend in Europe, where ambitious offshore wind and interconnection projects face mounting cost pressures. The Princess Elisabeth Energy Island remains a landmark for sustainable energy infrastructure and biodiversity innovation, but its scope now aligns more closely with immediate national needs and economic realities.
