The European Commission confirmed that Belgium’s state‑aid scheme of €2.04 billion meets EU rules, unlocking financial support for the 735 MW Princess Elisabeth offshore wind farm in the North Sea.

The project, located in the designated Princess Elisabeth Zone, is slated to generate up to 2.6 TWh of clean electricity each year, adding roughly 735 MW of capacity to Belgium’s offshore portfolio.

Funding will be delivered through a two‑way contract‑for‑difference (CfD) mechanism, providing a variable premium when market prices fall below the winning bid and requiring payments back to authorities when prices exceed the bid.

The CfD is designed to give investors revenue certainty while limiting excess returns, a feature highlighted as crucial for capital‑intensive offshore projects.

The approval does not imply that the wind farm is built or operational; it merely confirms compliance with EU state‑aid requirements and sets out a financial framework tied to project milestones.

The island, located about 45 km off the coast, will feature a 220 kV substation, 66 kV switching facilities and six 220 kV AC cables, enabling connections for the first offshore farms from 2031 onward.

Next steps for the wind farm include a national tender to select a developer, securing financing, obtaining permits and finalising engineering designs before construction can commence.