Masdar and Iberdrola invest €5.2bn in UK offshore wind

Masdar and Iberdrola announce a joint investment of €5.2 billion in the East Anglia THREE offshore wind farm in the United Kingdom and full commissioning of the German Baltic Eagle project (476 MW).

Share:

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.

Ecopetrol S.A. finalises the acquisition of Wind Autogeneración from Enel S.A.S., thereby taking over the Windpeshi wind project in Colombia, with a planned capacity of 205 MW, aimed at the Colombian oil group's energy self-consumption.
Oceanic Wind Energy Inc. and Coast Tsimshian Enterprises Ltd. secured an exclusive investigative use permit in the Hecate Strait, paving the way for Canada's first major offshore wind project, targeting capacity of up to 700 MW.
German manufacturer Nordex will supply 13 N163/6.X wind turbines to developer SAB WindTeam for a 91 MW wind farm in Brandenburg, with commissioning scheduled for early 2027 and an extended 20-year service agreement.
EDF is delaying the start-up of the Calvados offshore wind farm by more than two years, citing extended adjustments to a drilling tool vital for installing the sixty-four monopile foundations off Courseulles-sur-Mer.
German company NeXtWind signs historic €1.4 billion debt financing to accelerate expansion and modernisation of its onshore wind farms and reach a total capacity of 3 GW by 2028.
Energy company TGS has won a major high-resolution geophysical imaging contract for offshore wind site characterization in Norway, strengthening its position in this rapidly growing market.
Iberdrola Australia secures crucial approval from Australian authorities to begin metocean studies for its 3GW Aurora Green offshore project off the coast of Victoria, marking a decisive stage in its development.
ENGIE begins full operation of the Red Sea Wind Energy wind farm in Egypt, increasing its capacity to 650 MW, four months ahead of schedule, now powering over one million homes in the region.
Tokyo Gas, through TOWII Renewables, a joint venture with EWII, purchases two onshore wind projects developed by Finnish company Puhuri, totalling 74.4 MW, marking its expansion beyond the Danish market.
The European Investment Bank grants EWE AG historic €450mn financing for the installation of 2,600 km of underground power lines and the upgrade of over 1,100 substations in Lower Saxony.
Japan’s Ministry of Industry and Siemens Gamesa Renewable Energy launch a strategic partnership to develop local offshore wind supply chains and strengthen the country's industrial competitiveness in this energy sector.
Energiekontor AG confirms financial close for the Nartum wind farm, adding 23 megawatts to its owned portfolio and starting the construction phase in the Rotenburg district, Lower Saxony.
Airloom Energy begins construction of a pilot site in Wyoming to test an innovative turbine aimed at enhancing American energy security in the face of anticipated growth in electricity demand.
ACCIONA Energía transfers the San Juan de Marcona wind farm to Luz del Sur S.A.A., a major player in Peru's energy sector, for up to USD 253 million, pending necessary regulatory approvals.
German operator Encavis AG strengthens its portfolio by acquiring two wind farms in Lower Saxony and Saxony, totalling 59 MW, in a transaction with Energiequelle GmbH, thereby expanding its renewable energy assets.
Ocergy officially launches an industrial project aiming to install by 2028 a new-generation floating wind turbine of over 15 MW, in partnership with EnBW, Kyuden Mirai, and TEPCO Renewable Power.
France officially commissions its first floating wind farm, consisting of three turbines with a combined capacity of 25 megawatts, introducing strategic technology in the Mediterranean, vital for national energy goals.
Inaugurated on 20 June, the five-turbine plant of wpd onshore France feeds 18 MW into the grid and unlocks new tax revenue for four Côtes-d’Armor municipalities.
Statkraft refocuses investments on flexible Nordic hydropower and reduces commitments in offshore wind and hydrogen to lower operating costs, amid an uncertain economic environment and pressured profitability.
Suzlon Group receives third consecutive order from AMPIN Energy Transition to supply 170.1 MW of wind turbines for a project in India's Andhra Pradesh state, strengthening their strategic industrial partnership.