Belgium's 735 MW Offshore Wind Farm To Generate Up To 2.6 TWh A Year

According to the European Commission, Belgium can provide €2.04 billion in state aid for an offshore wind project in the Princess Elisabeth offshore Zone that is expected to reach up to 735 MW and generate up to 2.6 TWh of renewable electricity a year. The approved scheme covers the construction and operation of the first wind farm in the zone, in the North Sea, and will remain in place for 20 years. The measure was cleared under the Clean Industrial Deal State Aid Framework, or CISAF.

Princess Elisabeth Zone Project Is Set At Up To 735 MW And 2.6 TWh A Year

The approved support is tied to the first offshore wind farm planned in the Princess Elisabeth offshore Zone. Belgium expects that project to deliver up to 735 MW of installed capacity and up to 2.6 TWh of renewable electricity annually.

Those figures describe both the size of the generation asset and the volume of electricity it is expected to supply each year once operating. The measure applies to both construction and operation, so the aid structure is designed to support the project from build-out into long-term generation.

The scheme is limited to this first wind farm in the zone rather than a wider set of projects. It therefore focuses the approved budget on a single offshore installation in the North Sea.

The approved measure for offshore wind energy in Belgium replaces a support scheme that had been approved in 2024 under the Temporary Crisis and Transition Framework. Aid under that earlier measure was not granted by the legal deadline of 31 December 2025, so Belgium notified the new scheme under CISAF.

€2.04 Billion Scheme Would Support Construction And Operation For 20 Years

The maximum budget for the Belgian measure is €2.04 billion. The approval states that the scheme will run for 20 years, giving the project a long support period once awarded.

The aid is structured as direct price support for the offshore wind farm. Rather than a one-time grant, the support mechanism is meant to operate over time alongside the plant's electricity sales. That approach links the aid to power market conditions while still backing the project's expected electricity production.

The measure was approved under CISAF, a framework adopted on 25 June 2025 for state aid tied to the transition to a net-zero economy. Within that framework, member states can support renewable energy rollout and low-carbon fuels, provide temporary electricity price relief for energy-intensive users, facilitate industrial decarbonization, support clean-technology manufacturing capacity, and de-risk private investments for clean energy and related infrastructure.

For this Belgian project, the approved measure is specifically aimed at offshore wind generation. The scope described in the approval is the development and operation of one wind farm, rather than a broader package covering other renewable technologies.

Monthly Two-Way CfD Uses Bid Price, Market Price And Monthly Capability

The support will be provided through a monthly variable premium under a two-way contract for difference, or CfD. Under this model, compensation is determined by comparing the winning bid price with a reference market price.

The reference market price will be weighted by the monthly capability of the offshore wind farm. That means the calculation is tied to the plant's monthly generation capability rather than being based only on spot market outcomes.

When the reference price is below the bid price, the project beneficiaries will receive payments. When the reference price is above the bid price, the beneficiaries will pay the Belgian authorities. In practice, the two-way structure allows the payment flow to move in either direction depending on market prices.

The approval also specifies that compensation will be granted for the potential electricity production the wind farm could have produced, rather than for its actual production. It adds that this design is intended to preserve market functioning and to avoid compensating producers for production in periods when the market value of that production is negative, in line with the EU's electricity market design rules.

This capability-based approach is one of the scheme's central technical features. It sets out how support would interact with the power market once the project is built and producing electricity.

Tender Result Is Expected In Q4 2027 With Supply-Chain Prequalification Rules

Aid will be awarded through a transparent and non-discriminatory bidding process. The result of that process is expected in the fourth quarter of 2027.

The tender will include Net Zero Industry Act criteria as prequalification requirements. Under those criteria, bidders will need to diversify supply chains for wind turbines and for main specific components. The stated purpose is to reduce dependency on imports from outside Europe and strengthen resilience.

The approval found that the scheme meets the conditions set out in sections 3 and 4.1.2 of CISAF. It also concluded that the measure is aligned with Article 107(3)(c) of the Treaty on the Functioning of the European Union.

From here, the process described in the approval is straightforward: Belgium will run the competitive tender, apply the stated prequalification criteria, and identify the winning project in Q4 2027. The selected offshore wind farm would then be able to receive support through the monthly two-way CfD during the 20-year life of the scheme, while delivering up to 735 MW of capacity and up to 2.6 TWh of renewable electricity a year from the Princess Elisabeth offshore Zone.