Global offshore wind: Belgium

Introduction

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With nine operational offshore wind farms, Belgium is amongst Europe’s leading offshore wind markets and is the 4th largest offshore wind energy producer globally behind the UK, Germany and China.  

There are also plans for a new zone for offshore wind farms in front of the West Coast, the ‘Princess Elisabeth’ zone.

It is expected that by 2030, 25 percent of the electricity production can come from the Belgian North Sea, saving in total 8.6 million tonnes of CO2 per year.

The Belgian federal government fully supports the European ambitions to reduce greenhouse gas emissions by 55 percent by 2030 and to achieve climate neutrality by 2050.

The table and map below provide an overview of operational, construction and consented projects.

Belgium: Current offshore wind projects

Belgium: Shareholdings in offshore wind projects

Belgium: offshore wind energy

Without offshore wind it will not succeed

Offshore wind energy is an indispensable part of the Belgian climate plan; without this North Sea energy resource, it would not be possible to achieve the European Union renewable energy targets for Belgium. By 2030, approximately 25 percent of the Belgian electricity production could come from the Belgian North Sea, saving a total of 8,6 million tonnes of CO2 per year.

Employment

The construction of an average offshore wind project creates approximately 1,400 direct jobs and an equal number of indirect jobs during the development and construction phase. The operating phase creates an average of 100 new jobs per wind farm. In concrete terms, this means that the development of the Belgian offshore wind industry, with its linked export activities, will create approximately 15,000 to 16,000 jobs (between 2010 and 2030) for the development, construction, operation and maintenance of the wind farms. The offshore wind industry can continue to make an important contribution (directly or indirectly) in the energy sector providing about 50,000 direct jobs.

Economic growth

In addition to the ecological need to further invest in offshore wind in the Belgian North Sea, the further development of the Belgian offshore wind industry is also an economic opportunity: adding €1,5bn year of value to the Belgian economy and numerous export opportunities for Belgian companies in Europe and globally.

Finally, it is important from an energy security perspective; the new offshore wind capacity will cover the planned (partial) closure of nuclear power stations in Belgium. As of the end of 2020, the operational wind capacity in the Belgian North Sea amounts to 2,262 MW (comparable to the capacity of the two largest nuclear reactors: Doel 4 and Tihange 3).

Offshore wind record broken in Belgium

During December 2023, offshore wind energy covered 14,3 percent of the total electricity demand in Belgium. With a monthly production exceeding the 1 TWh mark, it easily surpassed the previous monthly record of 1075 GWh of December 2023.

In 2023, the Belgian offshore zone, produced approximately 8 TWh. This corresponds to the annual electricity demand of almost 2,3 million households, or 10,2 percent of the total electricity demand in Belgium. Together with the existing offshore wind farms, the total offshore wind capacity in Belgium could be increased to 5.8 GW by 2030, nearly tripling its current offshore capacity.

Belgium: Development process

Belgium: Support regimes and offtake

At federal level, green energy certificates are awarded per MWh. The transmission system operator is obliged to purchase Green Certificates (GECs) at a guaranteed minimum price. The transmission system operator implements this public service obligation and is therefore obliged to buy GECs awarded by the federal energy regulator from the renewable energy operator.

For installations with a financial close date before May 1, 2014 (including C-Power, Belwind and Northwind) the guaranteed minimum GEC price is €107/MWh for power generated by the first 216 MW of installed capacity and €90/MWh for generation resulting from installed capacity above the first 216 MW. The minimum price for Nobelwind (demerger of the initial Belwind domain concession) is €107/MWh for power generated by the first 45 MW of installed capacity and €90/MWh for generation resulting from the remaining 120 MW. The purchase obligation is valid for 20 years for these four wind farms.

For the five other wind farms (Rentel, Norther, Mermaid, Seastar and Northwester 2), the minimum price per GEC depends on the electricity price. The minimum price is set by the CREG (Commission for Electricity and Gas Regulation) in accordance with the applicable provisions of the Royal Decree of 16 July 2002 (Article 14, § 1, 1°ter and 1°quater). The purchase obligation is valid for 19 years for the Rentel and Norther wind farms and for 17 years for the Mermaid, Seastar and Northwester 2 wind farms.

In certain periods of overproduction, no support will be given. For a maximum of 72 hours per calendar year, the minimum price is fixed at €0 when electricity production occurs at a time when the imbalance tariff is equal to or lower than €-20/MWh, or (ii) the day-ahead-price on the traded market is lower than €0/MWh during six consecutive hours. The imbalance tariff is published by the transmission system operator.

Recently, the Belgian Government decided to adjust the support mechanism for offshore wind power. From 2023 onwards, and for the entire duration of the support period (up to 16 years), the five “youngest” offshore wind farms – which can rely on a variable support mechanism based on the established reference price for electricity – will have to make a structural solidarity contribution. This means that when power prices are high, part of the profits will be returned to the government.

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Belgium: Challenges and hot topics

Obstacles and challenges

All operational offshore wind farms to date have been connected via dedicated links to the onshore grid. However, the transmission system operator has developed a power transmission grid in the Belgian part of the North Sea. With the creation of the Modular Offshore Grid (MOG), wind farms will be connected to a high-voltage substation located on an offshore platform (OSY), which will be connected to the onshore grid. The objectives of the project are to secure transmission of electricity and the security of the grid, to further improve electricity market integration and to minimise the environmental impact of the cables necessary to connect the offshore wind farms.

Offshore wind farms with a financial close date after December 31, 2016 are obliged to connect to the MOG in the North Sea, which has been operational since 2020. The MOG enables security of supply: if one of the offshore cables is defective or malfunctions, the wind farms can continue to inject their energy into the Belgian grid. 

Hot topics 

Artificial energy island

Within the Princess Elisabeth Offshore Wind Development Zone, Belgium is planning an artificial energy island. The energy island will act as a clean energy hub and is expected to handle up to 3.5GW of offshore wind power, connecting multiple offshore wind farms and efficiently transmitting electricity onshore to Belgium and other countries such as the UK and Denmark via subsea cables.

The energy island is expected to be completed in 2026. Thereafter, Elia (Belgium's electricity transmission system operator) will commence construction of the main electricity infrastructure to connect the island onshore.  Elia was previously involved in the operation and maintenance of the 'Offshore Switchyard', part of the Modular Offshore Grid (MOG) in the Belgian North Sea. The  Offshore Switchyard connects four windfarms: Rentel, Seastar, Mermaid and Northwester 2, collating the combined energy and transmitting it onshore through join subsea cables.

The energy island forms part of the larger Triton Link Project, where the two system operators Elia (Belgium) and Energinet (Denmark) are collaborating on the implementation of a subsea connection between their respective artificial offshore energy islands in the northern and southern parts of the North Sea.

Source: Elia Group Infrastructure and Projects

Higher offshore target for Belgium

Belgium’s Minister of Energy called for Belgium to raise its offshore wind target to 8 GW (up from 5.7 GW) on the back of the ongoing Ukrainian war and its implications on European energy security. It comes after the European Union announced in March 2022 its 'REPowerEU' plan to make Europe independent from Russian fossil fuels well before 2030.

To deliver on the targeted 8 GW offshore wind target, Belgium is considering repowering part of its existing wind farm capacity (i.e. replacing existing turbines with more efficient, modern turbine models). If this goes ahead, it will be the first time a commercial-scale offshore wind farm gets repowered in Europe.

Hybrid projects

Evolving from a more traditional way of offshore grid development – national projects with a direct connection to the mainland via transversal connections – special attention has recently been paid to so-called hybrid projects. Hybrid projects have a dual functionality by combining electricity connections between two or more countries with the transmission of offshore renewable energy. Hybrid projects can be constructed in several ways, including via energy islands. 

Embracing this forward-looking vision and the benefits these projects will bring in terms of cost-efficiency and environmental gains, Belgium intends to once again act as a pioneer by constructing one of the first artificial energy islands in the North Sea, which will act both as a grid access point for offshore wind in the Princess Elisabeth Zone and as an access point for future interconnections.

Marine spatial planning 

The Belgian part of the North Sea is busy with a lot of activities taking place in a rather limited space, including such as renewable energy projects and transportation, nature conservation, shipping, fishing and sand extraction. In order to achieve balance between these interests, Belgium was one of the first countries in the world to draft a Marine Spatial Plan (MSP), back in 2014. The 2014 MSP legally determined, for a period of six years, where each activity was (or was not) allowed at sea. The existing Natura 2000 nature areas were designated in the 2014 MSP, but until now these areas lacked effective protection.

The 2020-2026 MSP sets out new areas for offshore wind activities, part of which are situated in existing Natura 2000 areas. The limited space for offshore activities, combined with Belgium’s leading position in offshore wind, results in many countries watching Belgium with great interest.

The Belgian Offshore Platform, an association of investors and owners of wind farms in the Belgian part of the North Sea, and 4Sea, a coalition of environmental organizations, have announced their intention to work together to "maximise the protection and enhancement of the biodiversity values of the North Sea." This announcement evidences an important first step toward good spatial planning in the entire North Sea area. Nature-inclusive renewable energy looks to the future and Belgian is at the front of the race.

Belgium: Future investment opportunities

Short-term investor outlook

The Belgian offshore wind market continues to show significant potential in the short-term, with the upcoming Princess Elisabeth Offshore Wind Zone and Elia artificial energy island  leading the way. 

As assets achieve commercial operation, there are likely to be opportunities for investment. 

Concessions are awarded through a competitive tendering procedure for a period of 30 years covering the construction, operation and decommissioning phases. 

Long-term outlook

The Federal Government approved the new ‘MSP’ which foresees additional zones for offshore wind farms for the period 2020-2026. This is an important and positive sign for investors in the market. Especially with the new Princess Elisabeth Zone on its way, the possibilities for investors increase.

Key players (operational MW)