The Belgian federal government has approved a revised regulatory framework to relaunch the tender for the first site in the Princess Elisabeth Zone (PEZ 1). It has also set the latest commissioning date for the first phase of the Modular Offshore Grid II (MOG II) energy island. The updated tender rules are intended to simplify the procurement process and improve competition.
The maximum construction period has been increased from four to five years. The change reflects supply chain constraints and seasonal restrictions on offshore piling, providing developers with a more realistic timeframe to complete projects while maintaining delivery certainty.
The previous maximum bid price has been abolished. The government said a price cap could discourage participation and limit competition. Bidders will instead compete on strike price, with the lowest bid ranked first.
The revised framework introduces a single support mechanism based on a two-sided Contract for Difference (CfD). Developers will submit a strike price in their bids. If market prices fall below the strike price, the producer receives the difference. If market prices exceed it, the excess is returned to the government. The system is intended to provide revenue certainty for developers while limiting excessive returns.
The previous carve-out for fixed-price power purchase agreements (PPAs) has been removed, eliminating parallel support schemes. All bidders will compete under the same framework. Developers will still be free to enter into PPAs with industrial or other electricity consumers.
Community participation will no longer be a mandatory eligibility or award criterion. Developers may still choose to involve citizens or energy cooperatives on a voluntary basis.
For the first time, the tender has been aligned with the European Union's Net Zero Industry Act. Mandatory prequalification criteria cover cybersecurity, corporate responsibility, environmental sustainability and supply chain resilience.
At least 75% of the turbines installed must not be manufactured or assembled in China. For those turbines, no more than four critical components may originate from or be assembled in China. In addition, no more than 85% of the permanent magnets used may originate from China.
The Council of Ministers also approved a separate decree setting 1 October 2031 as the latest commissioning date for the first phase of the MOG II energy island. The deadline is based on Elia's development schedule and reflects the government's intention to develop the offshore grid infrastructure in parallel with the PEZ 1 tender.
The revised tender decree will now be submitted to the Belgian Council of State for legal review and formally notified to the European Commission under State aid rules. Once these procedures are completed, the decree can be formally adopted and the PEZ 1 tender relaunched.
