Masdar and Iberdrola have reached two key milestones in their strategic clean energy alliance, including a landmark co-investment in the UK’s East Anglia THREE offshore wind farm and the full energization of the 476MW Baltic Eagle project in Germany.
The East Anglia THREE investment marks one of the largest offshore wind transactions of the decade and highlights progress towards the $16.5 billion (€15 billion) strategic partnership signed in December 2023 between the UAE’s Masdar and Spain’s Iberdrola. The alliance aims to accelerate renewable energy deployment across Europe, the UK, and the US and contribute significantly to tripling global renewable capacity by 2030.
Under the new agreement, Masdar and Iberdrola will each hold a 50 percent stake and joint governance in East Anglia THREE, a 1.4GW offshore wind project located off the Suffolk coast. Once operational in fourth quarter of 2026, the project will provide clean electricity to approximately 1.3 million British homes.
The transaction has cleared all conditions precedent and is expected to close shortly. The project financing was finalized with a syndicated loan of approximately $4.3 billion (£3.5 billion) secured from 24 international banks. The financing round was oversubscribed by 40 percent, underscoring investor confidence in the offshore wind project. The funds will cover a substantial portion of the project’s total cost, while avoiding debt consolidation in either partner’s balance sheets.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, stated that, “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.”
The UK project benefits from long-term financial security through a 15-year CPI-linked Contract for Difference (CfD) secured via the UK Government’s AR4 and AR6 auctions. Additionally, a Power Purchase Agreement (PPA) was signed with Amazon in 2024. During construction, East Anglia THREE is expected to create over 2,300 jobs, with around 100 permanent roles supported throughout its operational life.
Masdar and Iberdrola also announced the successful completion and full energisation of their Baltic Eagle offshore wind farm in the German Baltic Sea. The 476MW wind project is the first delivered under their strategic alliance and marks Masdar’s entry into the German energy market. The project will power approximately 475,000 households and reduce carbon dioxide emissions by nearly 800,000 tons annually.
Baltic Eagle represents Masdar’s largest euro-denominated financing to date and significantly strengthens its presence in the European clean energy sector. The project also reinforces Germany’s energy transition goals and highlights the growing momentum in offshore wind across Europe.
Ignacio Galán, Executive Chairman of Iberdrola, said that, “Joining forces with Masdar in the East Anglia THREE offshore wind farm will allow Iberdrola to accelerate our strategic focus on the UK, where we are investing $29.4 billion (£24 billion) to 2028 in transmission and distribution networks and in renewable energy, contributing to the delivery of the UK Government’s ambitious electrification plans.”
Masdar CEO Mohamed Jameel Al Ramahi noted that the landmark partnership underscores our commitment to driving Europe’s energy transformation and advancing global climate goals.
The two companies plan to continue collaborating on additional clean energy ventures across Europe and other global markets. Joint investments in offshore wind and green hydrogen under the partnership are projected to total $16.8 billion (€15 billion). Work is already underway to identify new opportunities that support global decarbonization and energy diversification efforts.
