Masdar and Iberdrola have announced a €5.2 billion co-investment in the East Anglia THREE offshore wind project in the UK, marking one of the largest offshore wind transactions of the decade. Each company will hold a 50% stake in the 1.4 GW project, which is set to deliver enough clean energy to power 1.3 million homes when it begins operations in the fourth quarter of 2026.
The investment aligns with the companies’ broader €15 billion alliance aimed at scaling offshore wind and green hydrogen initiatives across the UK, Germany, and the US. The East Anglia THREE project will benefit from long-term revenue security through a 15-year Contract for Difference (CfD) awarded during the UK Government’s AR4 and AR6 auctions. Additionally, a Power Purchase Agreement (PPA) with Amazon signed in 2024 will further support the project’s financial viability.
Financing details for East Anglia THREE were finalized on July 9, with approximately £3.5 billion (around €4.1 billion) secured from 24 international banks, oversubscribed by 40%. This financing will cover a significant portion of the project’s total estimated costs without affecting the partners’ balance sheets.
In conjunction with this investment, Masdar and Iberdrola have also completed the Baltic Eagle offshore wind farm in the German Baltic Sea, with a capacity of 476 MW. This project is now fully energized and is expected to supply renewable energy to around 475,000 households while reducing carbon dioxide emissions by approximately 800,000 tons annually. Baltic Eagle is part of Iberdrola’s Baltic Hub, which includes two other wind projects: Wikinger (350 MW, operational) and Windanker (315 MW, in planning).
HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, highlighted the importance of these projects in advancing clean energy goals in Europe. He noted that the partnership with Iberdrola is essential for accelerating the growth of offshore wind capacity globally.
Ignacio Galán, Executive Chairman of Iberdrola, emphasized that the collaboration with Masdar enhances their strategic focus on the UK market, where Iberdrola plans to invest £24 billion by 2028 in transmission, distribution networks, and renewable energy. The Baltic Eagle project represents a significant achievement in their partnership, reinforcing Iberdrola’s commitment to electrification in the region.
Mohamed Jameel Al Ramahi, CEO of Masdar, reiterated the partnership’s goal of advancing Europe’s energy transformation. He pointed out that their joint investments in East Anglia THREE and Baltic Eagle exemplify how international collaborations can yield substantial impacts in renewable energy.
Looking ahead, Masdar and Iberdrola are actively exploring additional opportunities for clean energy projects across Europe and other markets, with an anticipated total investment of €15 billion in offshore wind and green hydrogen initiatives. Masdar aims to reach 100 GW of global clean energy capacity by 2030, with its European projects expected to contribute up to 30 GW.
In 2024, Masdar further expanded its footprint by acquiring Saeta Yield in Spain and TERNA ENERGY in Greece, reinforcing its role as a reliable partner in renewable energy development. Iberdrola, for its part, committed €17 billion to electricity grids and renewable generation in 2024, strengthening the electrification of the economy and promoting energy independence while creating jobs worldwide.
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