Iberdrola, Masdar invest €5.2Bn in 1.4-GW East Anglia Three offshore windfarm

The companies’ investment in the East Anglia Three offshore windfarm is the largest offshore wind transaction of the decade.

Under the agreement, each will have a 50% stake in and cogovernance of the asset. All conditions precedent have been achieved and the transaction is expected to close shortly.

In addition, on 9 July, project financing for East Anglia Three was signed for approximately £3.5Bn (US$4.7Bn) 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 €5.2Bn, 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 windfarms when it comes into operation in Q4 2026.

The project benefits from long-term revenue security through a 15-year CPI-linked Contract for Difference awarded in the UK government’s AR4 and AR6 auctions, as well as a power purchase agreement with Amazon signed in 2024. More than 2,300 jobs are expected to be created during construction, with 100 long-term roles supported across its lifetime.

Iberdrola and Masdar have also celebrated the completion and full energisation of the Baltic Eagle offshore windfarm in the German sector of the Baltic. The 476-MW windfarm is a major step forward supporting Germany’s clean energy ambitions.

Baltic Eagle is the second of Iberdrola’s three windfarm projects in Germany, along with Wikinger (350 MW, in operation) and Windanker (315 MW, in planning). Collectively, these offshore windfarms form Iberdrola’s Baltic Hub.

Baltic Eagle is Masdar’s first project with Iberdrola, its first in Germany and resulted in the company’s largest ever euro-denominated financing.

Iberdrola executive chairman Ignacio Galán said, “Today is an important landmark in our partnership with Masdar. Partnerships such as this are vital in accelerating energy security and competitiveness and working towards delivering ambitious climate targets. With Masdar, we have a partner who shares our vision and commitment.

“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.”

Masdar chief executive Mohamed Jameel Al Ramahi said the partnership “underscores our commitment to driving Europe’s energy transformation and advancing global climate goals.”