The federal government is accelerating the development of offshore wind energy in the North Sea. The immediate priority is relaunching the tender for the first offshore plot of the Princess Elisabeth Zone (PEZ 1), while preparation of the next phase, PEZ 2, continues in parallel.
For federal Minister of Energy Mathieu Bihet, offshore wind energy is a strategic pillar of Belgian energy policy, alongside nuclear power and grid infrastructure.
“If we want to strengthen our energy security and protect our economy against external shocks, we must continue investing in local energy production. In this respect, the North Sea is one of our country's greatest strategic assets”, says Mathieu Bihet.
PEZ 1: final stretch towards a new tender
The federal government is actively continuing its work with a view to relaunching the tender for the first offshore plot of the Princess Elisabeth Zone.
On 2 April, the government received the CREG's proposal regarding the draft royal decree (Tender RD). This proposal is currently being incorporated into the draft text by the DG Energy.
The next steps are as follows:
- On 20 April, the CREG was asked for an opinion on the draft RD amending the Tender RD;
- On the same day, consultation with the sector began;
- The file can be finalised and submitted to the Council of Ministers for final approval.
As a reminder, Minister Bihet's ambition is to bring the PEZ 1 tender back to market within a stable, legally robust and investment-friendly framework.
The renewed tender framework provides in particular for:
- An extension of the construction period from 4 to 5 years;
- Objective and transparent conditions for all candidates;
- A strengthened regulatory framework clarifying the risks;
- Application of European state aid rules, with particular attention to sustainability and resilience;
- A support mechanism via a two-sided CfD;
- A simplification of administrative obligations;
- Flexibility regarding citizen participation.
The aim is to guarantee maximum competition and legal certainty for investors, as well as cost control for the community.
PEZ 2: preparing the next phase
At the same time, preparation of PEZ 2 continues in order to move quickly towards a new tender after PEZ 1 has been awarded.
Studies on maritime safety in the Princess Elisabeth Zone are currently being carried out by the DG Navigation. On this basis, policy conclusions and recommendations are being prepared. A targeted consultation will be organised after the Easter holidays.
If these studies conclude that the surface area of plot 2 and/or 3 needs to be changed, a new royal decree on the plots will need to be adopted. A decision can then be taken by the Council of Ministers, following an opinion from the CREG and consultation with Elia.
This decision will be taken on a proposal from the minister responsible for the North Sea, in consultation with the Minister of Energy, and will concern:
- The location, surface area and number of plots subject to a domain concession;
- The minimum and maximum capacity to be installed on each plot.
Looking ahead: repowering and supply security after 2035
In order to guarantee electricity supply security from 2035 onwards, the federal government is relying on several levers. The North Sea's production potential will be fully harnessed, in particular through:
- The development of the Princess Elisabeth Zone;
- The repowering of the eastern offshore zone;
- Cooperation with other North Sea countries in order, in line with the government agreement, to also examine opportunities beyond Belgian territorial waters.
Furthermore, the availability of grid infrastructure remains a key point of attention. For PEZ 2, the completion of the Boucle du Hainaut is an essential precondition for the development of additional offshore capacity.
Before a tender for PEZ 2 can be launched, several permits and assessments still need to be finalised by the “North Sea” administration, including:
- An appropriate assessment under Natura 2000;
- The environmental permit;
- A possible update of the environmental studies if necessary.
The federal government intends to launch these preparations in good time in order to avoid any delays and provide maximum clarity to investors.
Mathieu Bihet, federal Minister of Energy: “Offshore wind energy is a strategic project for our energy security and for Belgium's industrial future. With PEZ 1, we want to quickly provide clarity and move the tender forward. At the same time, we are already preparing PEZ 2 and looking further ahead to repowering and additional potential in the North Sea. In this way, Belgium will continue to play a pioneering role in offshore wind in the years to come.”