Abu Dhabi’s state-owned renewable energy company Masdar and Iberdrola have announced a €5.2bn investment in the UK’s East Anglia THREE offshore wind farm and the full energisation of the 476MW Baltic Eagle project in Germany.
The initiatives are integral to advancing Europe and the UK’s offshore wind targets. They are part of the companies’ €15bn strategic partnership aimed at accelerating clean energy deployment across key markets, including the UK, Germany, and the US.
The partnership, established in December 2023, is one of the largest bilateral alliances in the global clean energy sector.
The East Anglia THREE project, located off the Suffolk coast, will see both companies holding equal stakes and co-governing the asset.
This wind farm is expected to commence operations in the fourth quarter of 2026, providing clean energy to 1.3 million British homes.
Project financing was secured with £3.5bn from 24 international banks, covering a significant portion of the project costs. This financing was notably oversubscribed by 40%.
The project benefits from a 15-year CPI-linked Contract for Difference (CfD) and a Power Purchase Agreement with Amazon, ensuring long-term revenue security.
Additionally, it is anticipated to create over 2,300 jobs during construction and support 100 long-term roles. Meanwhile, the Baltic Eagle wind farm in the German Baltic Sea has been fully energised.
This project, the first completed under the Masdar-Iberdrola partnership, will supply renewable energy to approximately 475,000 households and reduce carbon dioxide emissions by about 800,000 tons annually.
Baltic Eagle is part of Iberdrola’s Baltic Hub, which includes the Wikinger and Windanker projects. This marks Masdar’s first collaboration with Iberdrola in Germany and represents its largest euro-denominated financing to date.
UAE Minister of Industry and Advanced Technology and Masdar chairman Dr Sultan Al Jaber said: “Masdar and Iberdrola are continuing to forge one of the largest and most powerful strategic clean energy partnerships to accelerate capacity growth in Europe and worldwide.
“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 executive chairman Ignacio Galán said: “Joining forces with Masdar in the East Anglia THREE offshore windfarm will allow Iberdrola to accelerate our strategic focus on the UK, where we are investing £24bn to 2028 in transmission and distribution networks and in renewable energy, contributing to the delivery of the UK Government’s ambitious electrification plans.
“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.”
