ENERGY
Belgium Establishes New Framework for Princess Elisabeth Zone Wind Farm Tender
The Belgian federal government has approved revised regulations for the first offshore wind development in the Princess Elisabeth Zone, setting October 2031 as the commissioning deadline for the energy island's initial phase.
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· OFFSHORE WIND
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Revised Tender Framework
The new regulatory structure follows the cancellation of the original Princess Elisabeth Zone 1 tender in July 2025 due to legal uncertainties regarding support mechanisms, state aid approval, and delivery schedules. Federal Energy Minister Mathieu Bihet emphasized that the government prioritized legal certainty over speed to ensure investor confidence and consumer protection.
Key changes include extending the maximum construction period from four to five years, removing strike price caps, and implementing a single two-sided Contract for Difference support mechanism where the lowest bid wins. The mandatory citizen participation requirement has been eliminated, though developers may still include voluntary participation schemes.
Supply Chain and Security Requirements
The framework aligns with the EU's Net-Zero Industry Act, introducing binding prequalification criteria for cybersecurity, sustainability, and supply chain resilience. At least 75 percent of wind turbines cannot be manufactured or assembled in China, with additional restrictions on Chinese-made critical components and permanent magnets.
The Council of Ministers separately approved October 1, 2031 as the service entry deadline for Elia's Princess Elisabeth energy island first phase. The offshore grid infrastructure and tender will now proceed simultaneously rather than sequentially to prevent further delays.
Project Overview
The Princess Elisabeth Island, positioned 45 kilometers off the Belgian coast, represents the world's first energy island. The Princess Elisabeth Zone encompasses three sites with combined capacity reaching 3.5 GW, with the first site accommodating approximately 700 MW and subsequent sites planned for 1,400 MW each.
The revised tender rules require review by the Belgian Council of State and European Commission notification under state aid regulations before the auction can proceed.