Iberdrola and Masdar Complete Largest Offshore Wind Financing in a Decade

Iberdrola, one of the world’s largest energy companies, and Masdar, Abu Dhabi's state-owned renewable energy company, marked key milestones in their partnership, which was launched in 2023 to invest in renewable energy. The companies reported they completed the largest offshore wind transaction in a decade for the financing of the UK’s East Anglia Three Project, while they also reached full energization of their first joint project.

The alliance was launched for a planned investment of up to €15 billion in projects across the UK, Germany, and the U.S.. The company called it one of the largest bilateral alliances in the global clean energy sector.

Advancing their goals, they reported signing the project financing for the UK project. A consortium of 24 international banks will provide approximately €4.1 billion ($4.8 billion) for the East Anglia Three project, which is projected to have a total cost of €5.2 billion ($6 billion). The project financing round was 40 percent oversubscribed by the banks, making it one of the largest transactions of its kind.

Located off the Suffolk coast in the UK, East Anglia Three will become one of the world’s two largest offshore wind farms when it comes into initial operation in Q4 2026. The plan calls for 1.4 GW of power, with Iberdrola and Masdar each owning 50 percent of the joint venture. It will provide the power equivalent of 1.3 million homes. East Anglia Three is a critical component of the UK’s plan to reach 50 GW of offshore wind capacity by 2030, up from its current approximate 15 GW capacity.

The project is supported by a 15-year CPI-linked Contract for Difference awarded by the UK government in rounds four and six. Further, the partners entered into a power purchase agreement in 2024 with Amazon.

“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,” said HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar. “With demand surging due to exponential AI growth and the rise of emerging markets, projects such as these have never been more critical."

The partnership also reported that on July 9, its inaugural project, Baltic Eagle in Germany, reached full energization with a capacity of 476 MW. While it is the first for the JV, it is the second for Iberdrola in Germany. The company is developing three projects, with the others being with Wikinger (350MW, in operation) and Windanker (315MW, in planning). Collectively, these offshore wind farms form Iberdrola's Baltic Hub.

The companies report they continue to explore other opportunities aligned with the growing global demand for power.