Masdar and Iberdrola have announced major progress in their joint offshore wind ventures, with a €5.2 billion ($6.07 billion) co-investment in the UK’s East Anglia THREE project and the full energisation of the 476MW Baltic Eagle wind farm in Germany.
The two developments are part of a broader €15 billion strategic partnership between the UAE-based and Spanish energy firms, aimed at accelerating renewable energy deployment across Europe and the United States.
Masdar and Iberdrola have agreed to co-invest in the 1.4GW East Anglia THREE offshore wind farm, with each holding a 50% stake and joint governance of the asset. The transaction, valued at €5.2 billion, is expected to be finalised shortly following fulfilment of all conditions precedent.
On 9 July, the project secured approximately £3.5 billion (€4.1 billion) in financing from a consortium of 24 international banks. The facility, which was oversubscribed by 40%, ranks among the largest of its kind in the offshore wind sector and will fund a significant portion of the project’s total costs.
Located off the Suffolk coast, East Anglia THREE is set to become one of the world’s largest offshore wind farms when it begins operations in late 2026. It is expected to generate enough electricity to power 1.3 million homes and create over 2,300 jobs during construction, with around 100 permanent roles once operational.
The project benefits from a 15-year, CPI-linked Contract for Difference (CfD) awarded through the UK Government’s AR4 and AR6 auctions, alongside a power purchase agreement signed with Amazon in 2024.
In Germany, the companies have completed and energised the 476MW Baltic Eagle offshore wind farm, located in the Baltic Sea. The project is expected to supply electricity to approximately 475,000 households and reduce CO₂ emissions by an estimated 800,000 tonnes annually.
Baltic Eagle forms part of Iberdrola’s Baltic Hub, which also includes the operational 350MW Wikinger project and the planned 315MW Windanker development. For Masdar, the project marks its first in Germany and the first completed under its partnership with Iberdrola.
The partnership between Masdar and Iberdrola, formalised in December 2023, represents one of the largest bilateral alliances in the global clean energy sector. The two firms are targeting further joint investments in offshore wind and green hydrogen, with additional opportunities currently being explored.
Masdar aims to reach 100GW of global clean energy capacity by 2030, with Europe expected to contribute up to 30GW. Recent acquisitions in Spain and Greece further expand its footprint across the region.
Meanwhile, Iberdrola invested €17 billion in grids and renewable energy in 2024, including €5.4 billion in renewable projects. The company added 2,600MW of green energy capacity during the year and remains a leading player in the European power purchase agreement (PPA) market.
