Brussels (Brussels Morning) – Belgium’s electricity network carrier Elia intends to invest €1.4 billion across the country this year, the group has stated in an updated quarterly statement.
What Are Elia’s Profit Projections for 2024?
Elia Group, which supplies electricity transmission services in Belgium and Germany, said it expects net profits of between €335 million and €385 million by the end of the year, with an altered return on equity for shareholders of between 7% and 8%.
How Will Elia Invest €1.4 Billion in Belgium?
Specifically in Belgium, the Group stated it is aiming to achieve a net profit of between €200 million and €230 million for 2024, with strategies to invest €1.4 billion here this year – although Elia stressed that this investment is “always prone to external risks.” The planned acquisition is part of a wider capital expenditure package of €30.1 billion that the Group is preparing to roll out between 2024 and 2028.
Aiming to satisfy growing societal electricity demand and incorporate increasing renewable energy production, around a third of the total amount will be invested in Belgium, with the remainder belonging to operations in Germany.
The quarterly statement also delivered an update on various projects being undertaken by Elia in Belgium, including the structure of the first pylon of a new high-voltage line between Mercator in Kruibeke and Liefkenshoek in Beveren (East Flanders) in March, which the Group states will be operational before the summer of 2026.
What Projects Are Elia Undertaking in Belgium This Year?
In February, the Elia Group concluded the acquisition of a 35.1% stake in energyRe Giga, as the domain of a $400 million (€369 million) deal that witnessed the European operator enter the US market for the first time.
A subsidiary of US company energyRe LLC, energyRe Giga focuses on sustainability and large-scale clean energy projects. Elia Group expressed the acquired stake is part of its plans to expand overseas moves and develop sustainable renewable energy projects.
Last year, Elia witnessed its net income slightly dip to €399.5 million, a 2.1% decline compared to 2022. The Group provides electricity to 30 million end users and operates around 2,750 people.
What Is Princess Elisabeth Island’s Role in Renewable Energy?
Moreover, in October 2023 Elia, the Belgian transmission system operator, made an effective announcement confirming that it has acquired the necessary authorization to progress with the development of Princess Elisabeth Island.
This groundbreaking project is balanced to become the world’s inaugural artificial intelligence island. At its core, Interesting Engineering said that Princess Elisabeth Island comprises a strategically placed energy centre located 45 kilometres off the Belgian coast, around 28 miles away.
The primary objective of this innovative energy hub is to specify a vital connection between Belgium’s onshore electricity grid, newly installed wind farms, and additional interconnectors stemming from the United Kingdom and Denmark.
Tinne Van der Straeten, the Federal Minister for Energy in Belgium, highlighted the nation’s prominent role in offshore wind energy. She highlighted Belgium’s obligation to expedite the transition to renewable energy by quadrupling offshore wind power in the Belgian North Sea, undertaking the building of an energy island, and selecting fresh interconnections with neighbouring North Sea countries.
Furthermore, she emphasised that the forthcoming energy island is poised to appear as a central offshore wind energy hub, catering to the sustainable energy requirements of both households and businesses in the country. Its development is positioned to transform the North Sea into a thriving source of green energy.
