Belgium offshore wind is moving forward again, but it is not entering a simple build-out phase. The country already operates 2.261 GW of offshore wind capacity in the Belgian North Sea. Its next expansion—the Princess Elisabeth Zone (PEZ)—could add 3.15 GW to 3.5 GW, taking total offshore capacity to roughly 5.4–5.8 GW.
The immediate next step is a relaunched tender for the first PEZ plot. Belgium cancelled the previous PE I tender in July 2025 after legal, grid and support-scheme uncertainties made the process too risky. In 2026, the federal government rebuilt the framework, set a key grid deadline, and opened consultation on revised tender documents.
For Indian readers following global renewable energy, Belgium’s experience is worth watching. It shows that offshore wind success depends not only on turbines and sea conditions, but also on transmission planning, bankable contracts, supply-chain resilience and credible project timelines.
Belgium’s offshore wind position today
Belgium is already a significant offshore-wind market despite its relatively small coastline. Nine offshore wind projects are operational in its North Sea waters, with 2.261 GW installed since 2020. These projects include C-Power, Belwind, Northwind, Nobelwind, Rentel, Norther, Seastar, Mermaid and Northwester 2.
The existing fleet is important, but the Princess Elisabeth Zone is the real next chapter. Located farther offshore, this second development zone has been designed to host up to 3.5 GW of additional capacity. At the top end, that would be more capacity than Belgium’s current offshore fleet.
The scale matters because the country is attempting something broader than adding wind farms. It is building an offshore transmission system intended to collect power at sea, connect it to the Belgian grid and potentially support future interconnections with neighbouring countries.
The first tender was cancelled—why that matters
Belgium cancelled the original tender for PE I, the first plot in the Princess Elisabeth Zone, on 2 July 2025. This was not a cancellation of the offshore-wind expansion itself. It was a reset of the commercial and legal conditions needed to attract credible bidders.
Several issues had to be resolved:
- The support mechanism and state-aid pathway needed greater legal clarity.
- The timetable for the Princess Elisabeth energy island, also called Modular Offshore Grid II or MOG II, needed to align with the wind-farm tender.
- Onshore grid reinforcements were essential to move future offshore electricity beyond the coast.
- Developers needed a more realistic construction schedule amid supply-chain pressure and offshore installation constraints.
This distinction is crucial. A wind farm can have a seabed area, permits and interested developers, yet still fail to reach construction if the power cannot be connected, the revenue model is uncertain or project risk becomes unfinanceable.
What changes under the new PE I tender framework?
Belgium’s revised approach is intended to make the PE I competition more investable while protecting consumers from excessive support costs.
A two-sided Contract for Difference
The new tender framework uses a two-sided Contract for Difference (CfD). Each bidder proposes a reference, or “strike”, price.
If the market electricity price falls below that reference price, the project receives the difference. If the market price rises above it, the project returns the difference. The aim is to reduce revenue volatility for developers without allowing unlimited windfall gains when wholesale power prices are high.
This matters because offshore wind requires large upfront capital investment. Stable and predictable revenue can reduce financing risk, which in turn can improve the quality and competitiveness of bids.
A longer construction window
The maximum construction period has been extended from four to five years. That reflects current realities: turbine, cable, vessel and foundation supply chains remain under pressure, while offshore work is seasonal and weather-dependent.
A longer window does not automatically mean a slower project. It can make schedules more realistic and reduce the risk of developers bidding aggressively only to encounter costly delays later.
No pre-set strike-price ceiling
Belgium has removed the previous ceiling on the strike price. The government’s view is that a hard cap could discourage participation if it does not reflect actual financing and construction costs.
The winner is expected to be the eligible bidder offering the lowest strike price, so competition remains central. The practical test will be whether enough strong bidders decide that the project’s economics are workable.
New supply-chain and resilience conditions
The framework aligns with the European Union’s Net-Zero Industry Act requirements. It includes cybersecurity, responsible-business, environmental and supply-chain-resilience criteria.
One major condition concerns turbine sourcing. For at least 75% of the project’s turbines, manufacturing or assembly cannot take place in China. For those turbines, only a limited number of critical components may be of Chinese origin or assembled in China, and permanent-magnet sourcing is also restricted.
These requirements may improve resilience and reduce dependence on a single supply base. However, they can also affect equipment choice, competition and project cost. This will be one of the most closely watched elements of the tender.
The Princess Elisabeth Island is the physical hinge of the plan
The Princess Elisabeth Island is central to Belgium offshore wind’s future. Located about 45 km off the coast, it is planned as an artificial energy island rather than a conventional wind farm.
Its role is to act as an offshore electricity hub. It will connect future PEZ wind farms to the onshore grid and may eventually support international interconnectors. This could help Belgium share renewable power more efficiently with neighbouring markets when conditions and network arrangements permit.
Construction work has already progressed, including the installation of large concrete caissons that form the island’s outer structure. But grid infrastructure of this complexity is not just a civil-engineering project. It involves offshore AC and DC systems, high-voltage equipment, subsea cables, control systems, environmental permissions and links to a reinforced mainland network.
The federal government has set 1 October 2031 as the latest commissioning date for the first phase of MOG II. That deadline gives investors and grid planners a more concrete point around which to plan, though delivering such projects on schedule will remain demanding.
The onshore grid is just as important as the turbines
One of the biggest lessons from Belgium’s reset is that offshore wind cannot be planned in isolation. Generating electricity offshore is only useful at scale if there is enough network capacity to transmit it to demand centres.
Ventilus is a key reinforcement project in this chain. It is planned to run from the Zeebrugge landing point to Avelgem, covering around 82 km. The project is necessary to add capacity for new offshore power and move it into the high-voltage system.
The PE I framework also includes a flexible-connection arrangement. The current reassessment indicates that 255 MW would be fixed in the first phase before the Boucle du Hainaut reinforcement is ready. This illustrates a practical truth of energy transition projects: the availability of generation may be phased according to the readiness of the wider grid.
For Belgium, the next few years will therefore involve parallel work:
- Finalising the PE I tender regime and securing European state-aid approval.
- Relaunching and awarding the first PEZ tender.
- Advancing Princess Elisabeth Island construction and electrical systems.
- Delivering critical onshore reinforcements, including Ventilus.
- Preparing later tenders for PE II and PE III.
As of the latest official update, dates for the PE II and PE III tenders have not been announced.
What should happen next—and what could delay it?
The public consultation on revised PE I tender documents began on 1 September 2026 and ends on 15 September 2026. The documents remain provisional while the legal revision continues.
Before the tender can be formally relaunched, the revised Royal Decree must move through the remaining approval process, including review by the Council of State and notification to the European Commission under state-aid rules.
The likely sequence is clear, even if exact commercial dates are not yet public:
| Stage | What it means |
|---|---|
| Revised tender rules | The legal and commercial conditions are finalised |
| State-aid clearance | The support structure gains the required European approval |
| PE I tender relaunch | Developers submit bids under the new framework |
| Project award | The winning developer gains rights and permits to build and operate |
| Construction and grid delivery | Wind farm, island systems and onshore reinforcements progress together |
| First MOG II phase | Latest official commissioning deadline: 1 October 2031 |
The key risks are also clear: grid-permit delays, high-voltage equipment availability, financing costs, vessel capacity, turbine supply, regulatory timing and potential changes in project economics.
Offshore wind is capital-intensive. Even a well-designed tender does not guarantee that bidders will submit attractive offers. Governments across Europe are learning that auction design must adapt when inflation, interest rates, equipment costs and supply-chain constraints change quickly.
Why Belgium’s project matters for India
Belgium’s offshore market does not directly determine electricity prices in India, but the lessons have relevance for Indian offshore-wind ambitions.
India has a long coastline, strong coastal industrial demand and major renewable-energy targets. However, offshore wind requires a different level of planning from onshore solar or wind. Developers need clarity on seabed rights, transmission corridors, port readiness, installation vessels, grid access, payment security and long-term offtake.
Belgium’s approach highlights three practical takeaways.
First, transmission must be developed alongside generation. Waiting until wind farms are ready to solve grid bottlenecks can create curtailment risk, delays and higher costs.
Second, tender rules need to reflect market conditions. A support mechanism that is too rigid may fail to attract bidders; one that is too generous can shift unnecessary cost to consumers. Two-sided CfDs are one way to balance revenue certainty with public protection.
Third, supply-chain policy needs realistic execution. Diversifying equipment sources and improving domestic capability can be strategically valuable, but project timelines and costs must account for actual manufacturing capacity.
For Indian manufacturers and service providers, the long-term opportunity is broader than turbine supply. Offshore wind needs cables, substations, marine engineering, ports, vessels, foundations, digital monitoring, corrosion management and specialised maintenance.
The outlook: progress, but not a guaranteed straight line
Belgium offshore wind is no longer at a standstill. The policy reset, revised tender framework and 2031 energy-island deadline provide a clearer route forward than existed after the 2025 cancellation.
Still, the next phase is about execution rather than ambition. The first PEZ tender must attract workable bids. Grid reinforcements must keep pace. The energy island must move from civil works to operational electrical infrastructure. And the costs of resilient European supply chains must be managed without making projects uncompetitive.
If Belgium succeeds, the Princess Elisabeth Zone could become an important example of how a mature offshore-wind market expands into integrated offshore-grid development. If delays persist, it will reinforce the lesson that offshore wind projects are as much about policy and transmission as they are about turbines.
Frequently Asked Questions
How much offshore wind capacity does Belgium currently have?
Belgium has 2.261 GW of operational offshore wind capacity in the Belgian part of the North Sea. The Princess Elisabeth Zone could add 3.15 GW to 3.5 GW.
Why was the first Princess Elisabeth Zone tender cancelled?
The PE I tender was cancelled in July 2025 because of legal and regulatory uncertainties, questions around support and state aid, energy-island timing and required onshore grid reinforcements.
When will Belgium’s Princess Elisabeth energy island be operational?
The Belgian government has set 1 October 2031 as the latest commissioning date for the first phase of Modular Offshore Grid II, associated with the Princess Elisabeth energy island.
What is a two-sided Contract for Difference in offshore wind?
It is a support arrangement that stabilises project revenue. When market prices are below the agreed strike price, the generator receives the difference; when prices are above it, the generator pays back the difference.
Has Belgium announced dates for PE II and PE III tenders?
No. The latest official information does not specify publication dates for the second and third Princess Elisabeth Zone tender lots.
Why are grid projects so important for offshore wind?
Offshore wind farms need transmission capacity to deliver electricity from the sea to homes, businesses and industry. Without offshore hubs, subsea cables and onshore grid reinforcements, new generation can be delayed or constrained.
