Flanders prepared to invest up to 1.56 billion euros in grid operator Fluvius

Flanders is prepared to invest up to 1.56 billion euros in electricity and gas grid operator Fluvius to strengthen its equity position and support major infrastructure investments. The plan was outlined by Flemish Energy minister Melissa Depraetere and reported by De Tijd on Tuesday.

Fluvius is preparing to invest around 11 billion euros over the next decade to modernise and reinforce Flanders' electricity grid. Those investments are needed to cope with the rapid growth of solar panels, electric vehicles and heat pumps.

But the grid operator faces a capital shortfall of around 1 billion euros by 2026, followed by an additional 560 million euros by 2029. To help support the energy grid's modernisation, Flanders is prepared to invest this money directly, De Tijd writes. ​

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Municipal ownership

While Fluvius operates the network, the electricity cables and gas pipelines are owned by eight intercommunal companies, which are in turn owned by the region's municipalities. They will first be given the opportunity to inject fresh capital. If that proves insufficient, Flanders will step in and buy stakes directly in the intercommunal companies, capped at 20 per cent.

If some intercommunal companies still fail to reach sufficient equity, Flanders will buy shares from the affected municipalities in holding company Publi-T, which has a controlling stake in Belgian transmission system operator Elia. The municipalities can then use those proceeds to strengthen their position in Fluvius.

Alongside the capital operation, the Flemish government wants to push ahead with a merger of the eight intercommunal companies into a single distribution system operator, paving the way for a single, unified distribution tariff across Flanders. At present, tariffs vary significantly by region, leading to large differences on household energy bills.

Interior minister Hilde Crevits stressed that Flanders will remain a minority shareholder and that municipalities retain a central role in the process. Several local authorities have already indicated they are willing to contribute capital themselves, meaning Flemish participation may not be necessary everywhere.

^{#FlandersNewsService | PHOTO © Peter Hilz / HH}

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