Masdar and Iberdrola Announce UK Offshore Wind Farm Deal

In one of the largest offshore wind transactions of the decade, Masdar, the UAE-based global clean energy leader, and Spain’s Iberdrola, one of the world largest energy firms, on Thursday announced that they have closed a $6.1 billion joint investment deal for the 1.4 GW East Anglia Three offshore wind farm in the UK.

The two companies have also reached another major milestone in the full energisation of their 476MW Baltic Eagle project in Germany.

These developments mark significant progress in delivering Europe and the UK’s offshore wind targets and advancing the companies’ $19.59 billion strategic partnership to accelerate clean energy deployment across key markets including the UK, Germany, and the US.

Signed in December 2023, the Masdar–Iberdrola partnership is one of the largest bilateral alliances in the global clean energy sector. Together, these projects accelerate Europe’s offshore wind build-out and underscore Masdar and Iberdrola’s commitment to tripling global renewable capacity by 2030.

East Anglia THREE

Masdar and Iberdrola will co-invest in the 1.4 GW East Anglia THREE wind farm in the UK, and under the agreement, each company will have a 50% stake in and co-governance of the asset, which will be pivotal in advancing Europe’s ambitious offshore wind development targets.

In addition, on July 9, the project financing for East Anglia Three was signed for approximately $4.1 billion with 24 international banks. Oversubscribed by 40%, the facility is one of the largest ever such transactions. It will cover a substantial part of the total costs of the project, estimated at approximately $.6.1 billion, without consolidating debt in any of the partners’ financial statements.

Located off the Suffolk coast in the UK, East Anglia THREE will become one of the world’s two largest offshore wind farms when it comes into initial operation in Q4 2026, delivering enough clean energy to power 1.3 million British homes.

Baltic Eagle Energisation

Masdar and Iberdrola have also celebrated the completion and full energisation of the Baltic Eagle offshore wind farm in the German Baltic Sea.

As the first project completed under the strategic partnership, the 476 MW wind farm represents a major step forward in supporting Germany’s clean energy ambitions, reinforcing both companies’ leadership in renewable energy development.

It will supply around 475,000 households with renewable energy while reducing carbon dioxide emissions by about 800,000 tons per year. Baltic Eagle is Masdar’s first project with Iberdrola, its first in Germany and resulted in the company’s largest ever euro-denominated financing.

Powerful Clean Energy Partnership

Dr Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of Masdar said that Masdar and Iberdrola were continuing to forge one of the largest and most powerful strategic clean energy partnerships to accelerate capacity growth in Europe and worldwide.

He said that offshore wind will play a crucial role in the global energy transformation, and landmark developments like Baltic Eagle and East Anglia THREE are significant advances towards clean energy targets in major European nations. With demand surging due to exponential AI growth and the rise of emerging markets, projects such as these have never been more critical.

Iberdrola’s Executive Chairman Ignacio Galan said that this is an important landmark in their global partnership with Masdar. Partnerships such as this one is vital in accelerating energy security and competitiveness and working towards delivering ambitious climate targets.

Joining forces with Masdar in the East Anglia THREE offshore windfarm will allow Iberdrola to accelerate its strategic focus on the UK, where Iberdrola was investing $28.15 billion to 2028 in transmission and distribution networks and in renewable energy, contributing to the delivery of the UK Government’s ambitious electrification plans, Galan said.

The completion of Baltic Eagle represents a new milestone in our partnership, reinforcing Iberdrola’s commitment to electrification and strengthening our presence in the Baltic Sea, Galan said.