Iberdrola, the Spanish energy and electricity provider, alongside UAE-based clean energy developer Masdar, has announced a new agreement to co-invest €5.2 billion in the 1.4 GW East Anglia THREE project. This initiative represents the largest offshore wind transaction of the decade.
The agreement follows the 2023 launch of a partnership between the companies, aimed at investing up to €15 billion in offshore wind and green hydrogen projects across Germany, the UK, and the United States. Ignacio Galán, Iberdrola’s Executive Chairman, emphasised the importance of such partnerships in accelerating energy security and competitiveness, as well as achieving ambitious climate targets.
Under the agreement, Iberdrola and Masdar will each hold a 50% stake and share governance of the East Anglia THREE wind farm. Situated off the Suffolk coast in the UK, this will be one of the largest offshore wind farms globally, providing enough clean energy to supply 1.3 million British homes. The project is expected to commence operations in the fourth quarter of 2026. It will benefit from a 15-year CPI-linked Contract for Difference (CfD) secured in the UK Government’s AR4 and AR6 auctions, along with a Power Purchase Agreement (PPA) with Amazon signed in 2024.
Additionally, the companies have secured project financing for East Anglia THREE, amounting to approximately €4.1 billion from 24 international banks. This marks one of the largest financing transactions of its kind, covering a significant portion of the project’s total costs.
The announcement also highlighted the completion of the first project under their strategic partnership, with the full energisation of the 476 MW Baltic Eagle offshore wind farm in the German Baltic Sea. HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, stated that offshore wind developments like Baltic Eagle and East Anglia THREE are pivotal in advancing clean energy targets in major European nations, especially as global demand rises due to AI growth and the emergence of new markets.
