Belgium's federal government is preparing a revised and lower-cost version of its delayed North Sea energy island project, after expenses for the original plan increased sharply, local media reported on Monday.
Energy Minister Mathieu Bihet is expected to present the updated proposal to the government in the coming days, Belga news agency reported, citing newspaper De Standaard.
The revised design is projected to reduce costs by around €2 billion ($2.3 billion) compared with the previous plan.
The Princess Elisabeth Island, located around 45 kilometers (around 28 miles) off Belgium's coast near Ostend, is designed to connect offshore wind farms to the national electricity grid and eventually establish an undersea power link with the UK.
The project faced major setbacks last year after estimated costs rose significantly from around €2.2 billion to more than €10 billion, including expenses tied to the planned UK connection.
Most of the financial burden was expected to fall on Belgian electricity consumers.
Under the new proposal, the UK interconnection would remain part of the project but with slightly reduced capacity, lowered from 1.4 gigawatts to 1.2 gigawatts.
The updated plan would continue combining offshore wind infrastructure with international electricity links, a strategy aimed at strengthening Belgium's role as an energy hub in northwestern Europe.
Officials cited declining prices for high-voltage equipment as a key factor behind the project's improved affordability.
Belgian and British regulators are still negotiating how costs and benefits linked to the interconnection project would be shared.
If approved, the revised project could also enable Belgium to move ahead with a third planned offshore wind farm, which had previously been put on hold.
