Masdar and Iberdrola have formalised a joint investment of €5.2 billion to finance the East Anglia THREE offshore wind project, located off the British coast. The wind farm, with an expected installed capacity of 1.4 gigawatts (GW), will be equally owned and jointly governed by both companies. This project represents one of the most significant recent transactions in the European offshore wind market, part of a broader strategic partnership worth €15 billion, established in December 2023. Operations are scheduled to begin in the fourth quarter of 2026, providing enough capacity to supply electricity to approximately 1.3 million British homes.
Financing successfully finalised
The financing of the East Anglia THREE project was finalised on July 9, with a total amount close to £3.5 billion (€4.1 billion). In total, 24 international banking institutions participated in the operation, which was oversubscribed by 40%, confirming the sector’s appeal to financial players. This financing mechanism covers a substantial part of the estimated total costs of approximately €5.2 billion, without consolidating debt on either partner’s financial statements. Project profitability is secured through an inflation-linked Contract for Difference (CfD) with the UK government, as well as a Power Purchase Agreement (PPA) signed with Amazon in 2024.
German Baltic Eagle wind farm now operational
Meanwhile, the two partners have announced the full commissioning of the Baltic Eagle offshore wind farm, located in the German Baltic Sea, with a total capacity of 476 megawatts (MW). As the first realised project within their strategic collaboration, Baltic Eagle will supply renewable electricity to approximately 475,000 German households. Its commissioning will also prevent the annual emission of around 800,000 tonnes of carbon dioxide (CO₂). Baltic Eagle forms part of Iberdrola’s Baltic Hub, which also includes the already operational Wikinger (350 MW) project and Windanker (315 MW), currently under planning. For Masdar, this project marks its entry into the German market and represents its largest euro-denominated financing to date.
Expansion of joint investments ahead
Initiated at the end of 2023, the partnership between Masdar and Iberdrola is one of the major bilateral alliances in renewable energy at the international level. Additional joint offshore wind and green hydrogen projects are currently under advanced evaluation, with a global investment objective set at €15 billion. Masdar aims to reach a total installed capacity of 100 GW by 2030, including around 30 GW in Europe. Iberdrola, meanwhile, has invested nearly €17 billion in electrical grids and renewable generation capacities in 2024 alone, raising its global renewable capacity portfolio beyond 44 GW.
