Masdar Iberdrola Finalize $5.6B UK Wind Farm Deal

In a record-breaking deal for the worldwide renewable energy industry, Masdar and Iberdrola have concluded a €5.2 billion ($5.6 billion) joint investment deal on Britain's East Anglia THREE offshore wind farm, the decade's largest-ever offshore wind deal. The agreement forms part of a larger €15 billion strategic partnership between Spain's Iberdrola and the UAE's Masdar intended to grow offshore wind and green hydrogen projects in some of the world's best global markets such as the UK, Germany, and the US.

East Anglia THREE, which is situated off the coast of Suffolk in the UK, enjoys a 1.4 gigawatt (GW) generating capacity and is anticipated to be commissioned by the fourth quarter of 2026. On becoming operational, it will supply clean electricity to about 1.3 million British homes. Masdar and Iberdrola have a 50% stake in the project on equal governance terms, emphasizing their shared interest in speeding up Europe's energy transition.

The financing for the project was completed on July 9 at a total cost of around £3.5 billion (€4.1 billion) from a syndicate of 24 international banks. The financing was 40% oversubscribed, and this is indicative of the investors' very high confidence in the commercial viability and sustainable contribution of the project. This funding mechanism does not bear on the balance sheets of Masdar or Iberdrola, and this is a reflection of the financial discipline and strategic vision of the deal.

The project is well-supported by the UK Government, which has acquired a 15-year CPI-indexed Contract for Difference (CfD), an vehicle to offer secure returns to renewable energy developers. An agreement for a Power Purchase Agreement (PPA) has also been entered into with Amazon in 2024 for supporting corporate demand for renewable power and generating longer-term returns. The build phase itself will create 2,300 jobs in total and is also leaving a legacy of around 100 full-time jobs in the operational life of the project.

Masdar and Iberdrola have also approved the final energization of their Baltic Eagle German offshore wind farm — their first operational joint venture. Located in Germany's Baltic Sea, the 476 MW project will produce as much electricity to power nearly 475,000 households and reduce carbon dioxide emissions by about 800,000 tonnes each year. Baltic Eagle is one of Iberdrola's larger Baltic Hub plans, including already commissioned Wikinger wind farm (350 MW) and planned Windanker plan (315 MW).

The German plant is Masdar's inaugural operational renewable asset in the nation and its largest ever euro-denominated finance. It also confirms the company's expanding footprint in Europe, where it aims to reach 30 GW of clean power capacity by 2030. The growth encompasses assets from new acquisitions like Spain-based Saeta Yield and Greece-based TERNA ENERGY. Together, Masdar anticipates to have 100 GW of clean power capacity globally by the end of the decade.

HE Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of Masdar, highlighted the importance of these projects within the framework of the increasing need to shift towards cleaner energy systems. "Masdar and Iberdrola are taking advantage of one of the largest and most material strategic clean energy partnerships to help drive capacity expansion in Europe and globally. Projects like these have never been more crucial," he stated.

Releasing similar sentiments, Ignacio Galán, Chairman of the Executive Board of Iberdrola, emphasized the wider strategic importance of the partnership. "Partnerships like this are critical in driving energy security and competitiveness and working toward ambitious climate goals." Galán also added that Iberdrola will be investing £24 billion in Britain up to 2028, dedicated to renewable power and grid infrastructure.

Mohamed Jameel Al Ramahi, Masdar CEO, called the deal a benchmark for the international offshore wind industry. "Together, we are setting a new benchmark for offshore wind collaboration. This transaction is a reflection of our strategy to lead Europe's energy revolution," he said.

In 2024, Iberdrola invested €17 billion in renewable energy production and grid infrastructure, adding 2,600 MW of clean power to its portfolio. The utility continues to be Europe's greatest Power Purchase Agreement signer, adding 1,250 MW of clean power contracts alone in 2024.

Baltic Eagle construction and financing for East Anglia THREE are significant milestones for Masdar and Iberdrola's €15 billion clean energy joint venture. Both companies' ventures are not only amplifying their renewable energy commitment but are also creating the European future energy course. Through the integration of financial stability, technical capabilities, and visions of the future, the venture is a model for global cooperation for sustainable energy transformation.