Masdar and Iberdrola invest €5.2bn in UK’s East Anglia Three offshore wind farm

Energy companies Masdar and Iberdrola have announced a €5.2 billion ($6 billion) co-investment in the UK’s East Anglia Three offshore wind farm.

The agreement will ensure each company has a 50% stake in the asset, which the partners will co-govern.

This week, project financing for East Anglia Three was signed for approximately £3.5 billion ($4 billion) with 24 international banks. This will cover a substantial part of the total costs of the project, estimated at approximately €5.2 billion.

Located off the Suffolk coast in the UK, East Anglia Three will come into operation in Q4 2026, delivering enough clean energy to power 1.3 million British homes.

The project was awarded a 15-year CPI-linked Contract for Difference (CfD) in the UK Government’s AR4 and AR6 auctions, and secured a Power Purchase Agreement (PPA) with Amazon in 2024.

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The investment announcement falls under the companies’ €15 billion ($18 billion) strategic partnership signed in December 2023 aimed at driving clean energy deployment across key markets.

Another milestone announcement was made this week in terms of the partnership, with the full energisation of the Baltic Eagle offshore wind farm in the German Baltic Sea.

As the first project completed under the strategic partnership, the 476MW wind farm will supply around 475,000 households with renewable energy, while reducing carbon dioxide emissions by about 800,000 tonnes per year.

HE Dr. Sultan Al Jaber, UAE minister of Industry and Advanced Technology and chairman of Masdar commented on the announcement: “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, executive chairman of Iberdrola, added: “Today is an important landmark in our global partnership with Masdar...

“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 £24 billion ($28 billion) 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, stated that strategic coinvestments such as this demonstrate how cross-border partnerships can "deliver transformative impact at scale".

Originally published on powerengineeringint.com