Belgian TSO Delays HVDC Contract Signing for Princess Elisabeth Island Due to Price Surge

Business & Finance

Elia Transmission Belgium (ETB) has decided to temporarily postpone the signing of the high-voltage direct current (HVDC) contracts for Princess Elisabeth Island due to the price increase for the HVDC infrastructure, according to the Belgium transmission system operator (TSO).

Princess Elisabeth Island will be the first artificial energy island in the world to combine both direct current (HVDC) and alternating current (HVAC). The high-voltage infrastructure on the island will bundle together the export cables from the wind farms in the 3.5 GW Princess Elisabeth Zone while also serving as a hub for future interconnectors with the United Kingdom (Nautilus) and Denmark (TritonLink).

To connect the third wind farm, which is planned to have 1,400 MW of capacity, Elia is currently negotiating for two HVDC converters (one on the island and one on the Belgian coast).

Elia’s international tender for direct current components reveals an overheated supply chain with significant price increases driven by scarcity, rising material costs, and inflation, according to the TSO.

Postponed signing causes an approximately three-year delay on the overall project but gives the Belgian government more time to reach a decision, according to the press release.

Elia said that they are weighing the current design against alternative concepts, which are also feasible but require a joint action plan with all the parties involved, as there are currently too many uncertainties both in policy and regulation.

“Should the new government opt for one of the proposed alternatives, a joint action plan is required between the government, the regulator, and Elia. Additionally, the UK regulator (Ofgem) and the UK transmission system operator need to be consulted (for the Nautilus project). As these alternatives differ from the reference scenario, an amendment to the ministerial decree on offshore grid design and a revision of the Federal Development Plan would also be necessary,” said the TSO.

Meanwhile, the construction of the artificial island (foundations) and the implementation of the already-signed HVAC contracts remain on track.

This should ensure the realisation of two (700 MW + 1,400 MW) of the three future offshore wind farms, representing 60 per cent of the new Princess Elisabeth wind zone already under implementation, according to Elia.

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