Iberdrola closes its alliance with Masdar in offshore wind with a 1.6 billion euro investment in the Baltic
Iberdrola has closed a strategic agreement with Masdar, the Abu Dhabi Emirate's renewables group, to co-invest in the 476 MW Baltic Eagle offshore wind farm in the Baltic Sea. After obtaining all necessary regulatory approvals, Iberdrola will have a 51% majority stake in the assets and thus accelerates energy independence in Europe.
Under the terms of the deal, the valuation of 100% of this wind farm amounts to around 1.6 billion euros. Iberdrola will control and manage the assets, providing operation and maintenance services and other corporate services.
Last July Ignacio Galán, chairman of Iberdrola, and Masdar CEO Mohamed Jameel al-Ramahi signed the agreement as part of a broader commitment between two clean energy powerhouses. Both parties consider this to be a strategically important transaction and a key milestone that strengthens a partnership that will allow further renewable energy investment opportunities to be explored across technologies and regions.
Baltic Eagle will have 50 wind turbines with a unit capacity of 9.53 MW on monopiles, producing 1.9 TWh per year, enough to sustainably meet the demand of 475,000 households and avoid the emission of 800,000 tonnes of CO2 into the atmosphere each year.
This wind farm, which is expected to come into operation at the end of 2024, has a minimum regulated tariff of 64.6 €/MWh for the first 20 years. In addition, it has already sold 100% of its production under long-term contracts.
In recent months, the energy group has closed several long-term alliances to boost the decarbonisation of the economy:
- Iberdrola has closed in September with GIC a strategic alliance for the expansion of transmission networks in Brazil for 430 million euros.
- It has also agreed with Norges Bank Investment Management to co-invest in 1,265 MW of new renewable capacity in Spain.
- The company has signed an agreement to sell more than 8,400 MW of combined cycle gas plants in Mexico for USD 6 billion.
- Iberdrola and MAPFRE have made further progress in their strategic alliance by incorporating 150 new MW through a joint venture, which already has 450 MW.
- Iberdrola and BP also signed a strategic alliance in March to deploy 11,700 fast charging points in Spain and Portugal.
- In addition, a few months ago Iberdrola signed an alliance with Energy Infrastructure Partners to co-invest in the Wikinger offshore wind farm and boost its offshore wind portfolio.