Masdar, Iberdrola announce UK offshore wind deal

emirates7 - Masdar, a global leader in clean energy, and Iberdrola, one of the largest energy firms worldwide, have reached two major milestones as part of their strategic collaboration: a joint investment in the UK’s East Anglia THREE offshore wind farm and the full energisation of the 476MW Baltic Eagle wind project in Germany.

These achievements highlight the progress the two companies are making in helping the UK and Europe meet their offshore wind goals. They also reflect the ongoing implementation of their €15 billion strategic alliance to fast-track clean energy expansion across major markets such as the UK, Germany, and the United States.

Formed in December 2023, the Masdar–Iberdrola alliance stands among the largest bilateral partnerships in the global renewable energy sector. The East Anglia THREE and Baltic Eagle projects are key contributors to Europe's offshore wind expansion and exemplify both companies’ dedication to tripling global renewable energy capacity by 2030.

Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, emphasized that offshore wind is essential to the energy transition, noting that milestone projects like Baltic Eagle and East Anglia THREE are crucial to achieving clean energy goals in Europe. He also pointed out that with soaring global demand driven by AI and developing economies, such projects are more vital than ever.

The East Anglia THREE offshore wind farm, located off the Suffolk coast, is a 1.4GW project where Masdar and Iberdrola will each hold a 50% stake and share governance responsibilities. Once operational in late 2026, it will be one of the world’s largest offshore wind farms, capable of powering 1.3 million UK homes with clean electricity.

The financing for East Anglia THREE was finalized on July 9, with a £3.5 billion (€4.1 billion) project finance deal signed with 24 international banks. The oversubscribed deal—by 40%—is one of the biggest transactions of its kind, covering a significant portion of the project's cost without affecting the balance sheets of either partner.

The project is backed by a 15-year inflation-linked Contract for Difference (CfD) through the UK Government’s AR4 and AR6 auctions, and a Power Purchase Agreement (PPA) with Amazon signed in 2024. Construction is expected to over 2,300 jobs and support 100 permanent roles over the project’s lifespan.

Meanwhile, the Baltic Eagle wind farm, fully energised in the German Baltic Sea, is the first completed venture under the Masdar–Iberdrola alliance. The 476MW facility will provide green energy to approximately 475,000 German homes and cut annual CO₂ emissions by around 800,000 tonnes. It also marks Masdar’s entry into the German market and the company’s largest euro-based financing to date.

Ignacio Galán, Iberdrola’s Executive Chairman, said the partnership will enhance the company’s focus on the UK, where it plans to invest £24 billion by 2028 in renewable energy and power infrastructure to support the country’s electrification goals.

Masdar CEO Mohamed Jameel Al Ramahi added that the alliance reflects a strong commitment to accelerating Europe’s energy transition and supporting global climate objectives.

Looking ahead, Masdar and Iberdrola plan to co-invest in additional clean energy initiatives in Europe and beyond, with a joint pipeline of projects—including offshore wind and green hydrogen—valued at up to €15 billion already under exploration.