Belgian market raises questions on power grid operator Elia's international investments

At its next general meeting of shareholders, Belgian high-voltage transmission system operator Elia will propose to increase its authorized capital "up to 600 million euros". The meeting takes place next Tuesday 17 May in Brussels.

According to the Belgian newspaper Tijd, the power grid operator is investing almost 10 billion euros in new infrastructure over five years to accelerate the energy transition. A capital round of 600 million euros is a first step in financing this.

"There is a good chance that the shareholders will give the green light, because the company is almost half owned by the municipal holdings Publi-T and Publipart," says the newspaper specialized in economics.

Elia states that it does not know the final destination of this sum, but that it will be part of its 2022-26 investment plan, which dedicates 4 billion euros to the Belgian network. 

The Belgian newspaper L'Echo informs that "some fear that the development of foreign subsidiaries will take precedence over the needs of the Belgian network", adding that the group plans to invest 4 billion in Belgium and 5,6 on its German counterpart, via its subsidiary 50 Hertz.

Tijd ponders that while some are worried about the internationalization of Elia, "others recall the role of control exercised by the Creg and by the CA in order to ensure that foreign investments are not made to the detriment of the Belgian consumer".

L'Echo concludes that Elia does not seem to be abandoning Belgium, "quite the contrary".

"More than to provide the means for its international ambitions, Elia is hunting for fresh money to significantly accelerate its current projects," it says.

Tijd reveals that behind the scenes, the Belgian banks Belfius and KBC are already preparing the operation together with an international bank. ​ In 2021, Elia invested 1,227 billion euros. This year, investments are planned for 1,275 billion in Belgium and in the German power grid.

Timing

For the Belgian newspaper in Dutch, Elia still has time, since the requested permission for a capital increase runs until the summer of 2023.

"The grid operator does not need the money immediately. At the end of last year, he still had 3 billion euros in liquid assets," it writes.

"But Elia will have to look for additional financing to carry out its massive investment program in the coming years," the newspaper announces.

Elia develops four major projects in Belgium: "Ventilus" in West Flanders; the "Princess Elisabeth" in the North Sea; the "Boucle du Hainaut", connecting the north to the south of Belgium; and "Nautilus" between Belgium and the United Kingdom.

(VIV) #FlandersNewsService

© BELGA PHOTO (PAUL-HENRI VERLOOY) Energy minister Tinne Van der Straeten visits ​ ​ Elia's National Control Center (NCC) in Brussels.