Belgium Relaunches Princess Elisabeth Offshore Wind Farm Tender
EU approves EUR 2.04 billion support scheme for North Sea wind project.
1European Commission Approves Funding
The European Commission has officially authorized a EUR 2.04 billion state-aid scheme to facilitate the construction of Belgium's first offshore wind farm in the Princess Elisabeth Zone. This decision serves as the critical final step required to relaunch the tender process, which was previously canceled in July 2025 due to various technical uncertainties.
2Ambitious Renewable Energy Targets
The project aims to support a wind farm with a planned capacity of up to 735 MW. Once fully operational, the facility is expected to generate approximately 2.6 TWh of renewable electricity annually. This output will contribute significantly to Belgium's broader energy goals and the European Union's overall transition toward a sustainable net-zero economy.
3Revised Financial Support Mechanism
The new scheme replaces a previous EUR 682 million measure that failed to meet the December 31, 2025, deadline. Under the updated framework, support will be provided through a monthly variable premium using a two-way contract for difference. This mechanism is designed to provide greater financial stability for developers throughout the project's twenty-year lifespan.
4Supply Chain Diversification Requirements
The upcoming tender incorporates strict prequalification criteria aligned with the EU's Net-Zero Industry Act. Bidders are now required to demonstrate diversified supply chains for wind turbines and essential components. This policy shift aims to reduce European reliance on non-European imports, fostering a more resilient and localized manufacturing base for critical renewable energy infrastructure.
5Lessons From Previous Cancellation
The original tender for the PEZ 1 site was abandoned in 2025 following legal, financial, and technical challenges. In response, Belgian authorities revised the framework by introducing the two-way contract for difference and extending the maximum construction period from four years to five years to accommodate potential logistical complexities and market-related risks.
6Strategic Role of Energy Island
The Princess Elisabeth Zone is anchored by the Princess Elisabeth Island, which represents the world’s first artificial energy island. This infrastructure is designed to eventually host three distinct offshore wind farms. The total combined capacity of these planned projects is expected to reach approximately 3.5 GW, marking a major milestone for North Sea energy.
7Regulatory Framework and Compliance
The Commission evaluated the aid measure under the Clean Industrial Deal State Aid Framework, which was adopted on June 25, 2025. Officials concluded that the scheme is necessary, appropriate, and proportionate for supporting the net-zero transition. This rigorous assessment ensures that the state aid does not unduly distort competition within the European energy market.
8Timeline for Project Delivery
Following the official relaunch, the competitive tender process is expected to proceed shortly. Industry stakeholders and potential bidders are now preparing for the next phase of the project. The final results of this competitive bidding process are currently anticipated in the fourth quarter of 2027, marking a pivotal moment for Belgian offshore wind.
Original article: offshoreWIND.biz — Belgium Relaunches Princess Elisabeth Offshore Wind Farm Tender