Masdar, the UAE’s flagship renewable energy company, and Iberdrola, one of the world’s largest energy utilities, have taken two significant steps forward in their €15bn ($17.5bn) strategic partnership to scale up global offshore wind power.
The first milestone is their co-investment in the 1.4GW East Anglia THREE offshore wind farm in the UK—one of the decade’s biggest offshore wind transactions.
The second is the full energisation of the 476MW Baltic Eagle wind farm in the German Baltic Sea, now supplying power to 475,000 homes and cutting carbon emissions by approximately 800,000 tonnes annually.
Signed in December 2023, the Masdar–Iberdrola partnership is among the largest bilateral clean energy alliances globally, aimed at tripling renewable energy capacity by 2030.
It includes offshore wind and green hydrogen projects with a combined value of €15bn ($17.5bn), targeting the UK, Germany, the US, and other key markets.
East Anglia THREE: A UK Masdar project
Under the agreement, Masdar and Iberdrola will each hold a 50 per cent stake in the East Anglia THREE wind farm, located off the Suffolk coast. When operational in Q4 2026, it will be among the world’s two largest offshore wind farms and will generate enough electricity to power 1.3 million British homes.
A key financial milestone was reached on July 9 when project financing of £3.5bn ($4.7bn) was secured through 24 international banks.
The oversubscribed loan, one of the largest of its kind, will cover a substantial portion of the project’s total cost without affecting the partners’ consolidated debt.
The project has secured long-term revenue certainty through a 15-year CPI-linked Contract for Difference (CfD) awarded by the UK Government and a Power Purchase Agreement (PPA) with Amazon, signed in 2024.
More than 2,300 construction jobs will be created, with 100 permanent roles once operational.
Baltic Eagle: Energised and Operational in Germany
The second major milestone in the partnership is the full energisation of the 476MW Baltic Eagle wind farm in Germany.
This marks Masdar’s first project in Germany and with Iberdrola, and also represents its largest euro-denominated financing to date.
Baltic Eagle will supply green energy to 475,000 households, helping Germany accelerate toward its clean energy targets.
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of Masdar, 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.”
Ignacio Galán, Iberdrola’s Executive Chairman, 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 ($32.6bn) to 2028 in transmission and distribution networks and in renewable energy, contributing to the delivery of the UK Government’s ambitious electrification plans.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “This landmark partnership underscores our commitment to driving Europe’s energy transformation and advancing global climate goals.”