Iberdrola and Masdar expand their agreement with joint investment in the East Anglia THREE offshore wind farm in the UK
- Financing secured with 24 international banks
- Start-up of Baltic Eagle, the first project of the Iberdrola-Masdar alliance
- Alliances for growth
Iberdrola and Abu Dhabi's renewable energy group Masdar have agreed to co-invest in the East Anglia THREE offshore wind farm. This 5.2 billion euros transaction is the largest in offshore wind energy in the decade and Iberdrola's largest co-investment. Under the agreement, each company will have a 50% stake in the asset.
Located off the coast of Suffolk in the United Kingdom, East Anglia THREE will be one of the two largest offshore wind farms in the world when it comes online in the fourth quarter of 2026, with a capacity of 1,400 MW, and will provide clean energy to 1.3 million British homes. The jobs created during its construction will reach 2,300.
The project has secured long-term, fixed-price sales of all its energy through a Contract for Difference (CfD) awarded by the UK Government and a long-term power purchase agreement (PPA) signed with Amazon in 2024.
Financing secured with 24 international banks
In addition, on 9 July, financing for the East Anglia Three wind farm was signed with 24 international banks for approximately 3.5 billion pounds (4.1 billion euros). The transaction, which is 40% subscribed, is one of the largest of its kind to date and will cover a substantial part of the total investment in the project, estimated at approximately 5.2 billion, without consolidating the debt in the financial statements of any of the partners.
Start-up of Baltic Eagle, the first project of the Iberdrola-Masdar alliance
Masdar and Iberdrola have also celebrated the completion and commissioning of the Baltic Eagle offshore wind farm, the first project completed under their alliance. With a capacity of 476 MW, it will supply clean energy to around 475,000 homes and reduce CO₂ emissions by around 800,000 tonnes per year.
Baltic Eagle joins Iberdrola's two other offshore wind farms in the German Baltic Sea: Wikinger, with 350 MW, already in operation, and Windanker, with 315 MW, which will come online in 2026.
Ignacio Galán, Iberdrola's chairman, said: 'Today marks an important milestone in our global agreement with Masdar, a partner that shares our vision and commitment to energy security, competitiveness and meeting ambitious climate targets. Joining forces with Masdar on the East Anglia THREE offshore wind farm will also enable us to accelerate our investment plans in the United Kingdom, which amount to 28 billion euros until 2028, mainly in transmission and distribution networks and renewable energy.'
‘The completion of the Baltic Eagle wind farm once again demonstrates Iberdrola's ability to execute large projects and strengthens our presence in the German Baltic Sea,’ said Iberdrola's chairman.
His Excellency Dr Sultan Al-Jaber, Minister of Industry and Advanced Technology of the UAE and Chairman of Masdar, said: 'Masdar and Iberdrola continue to forge one of the largest and strongest strategic partnerships in clean energy to accelerate the growth of green energy capacity in Europe and around the world. Offshore wind energy will play a crucial role in the global energy transition, and projects such as Baltic Eagle and East Anglia THREE represent significant progress towards clean energy targets in major European countries. With demand rising due to the exponential growth of AI and the rise of emerging markets, these projects are more important than ever.'
This joint investment is part of the 15 billion euros strategic agreement signed by Iberdrola and Masdar during the UN COP28 climate conference in December 2023 to jointly develop clean energy projects in key markets such as Germany, the United Kingdom and the United States with a commitment to triple renewable capacity by 2030.
Under this alliance, Masdar and Iberdrola will continue to jointly invest in future clean energy projects in Europe and other markets.
Alliances for growth
These transactions are part of Iberdrola's asset rotation strategy, which allows it to accelerate growth while improving its financial strength. Since 2024, transactions totalling 14 billion euros have been completed, meeting the target for alliances and asset rotation.
