Featured image sourced from Iberdrola press release
Masdar, the UAE-based clean energy powerhouse, and Spanish energy giant Iberdrola have taken a major leap in global offshore wind development. The duo announced a €5.2 billion co-investment in the 1.4 GW East Anglia THREE project in the UK.
The press release highlighted that it’s the largest offshore wind transaction of the decade. Each company will hold a 50% stake and share governance of the project, reinforcing their long-term alliance to scale renewable energy solutions across Europe and beyond.
HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, said:
“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. 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.”
1.4 GW East Anglia THREE Project Set to Power 1.3 Million Homes in UK
All conditions for the transaction have been met, and financial close is expected soon. On July 9, project financing was secured with 24 global banks, raising £3.5 billion (€4.1 billion) in one of the largest debt facilities in the sector. The financing, oversubscribed by 40%, will cover a significant portion of the total project cost and will not affect the financial statements of either partner.
Located off the Suffolk coast, East Anglia THREE is part of the broader East Anglia Hub. It received development consent in August 2017, with construction starting in July 2022.
The key milestones of the project are:
- Deliver clean electricity to 1.3 million UK homes once operational in Q4 2026.
- Generate more than 2,300 construction jobs and 100 long-term roles, helping to boost the UK’s green economy.
Additionally, the project is backed by a 15-year CPI-linked Contract for Difference (CfD) from the UK government under AR4 and AR6, providing long-term revenue certainty. A Power Purchase Agreement (PPA) with Amazon, signed in 2024, further supports the project’s financial stability and signals growing private sector demand for clean power.
Unlocking the Fully Energized Baltic Eagle Offshore Wind Farm
Adding to the momentum, the partners celebrated the full energization of the 476 MW Baltic Eagle offshore wind farm in Germany’s Baltic Sea. This is the first project to go live under the Masdar–Iberdrola strategic alliance.
- Baltic Eagle will generate enough clean electricity for around 475,000 households, cutting 800,000 tons of CO₂ emissions annually.
It forms part of Iberdrola’s larger Baltic Hub, which also includes the Wikinger (350 MW) and Windanker (315 MW) wind farms. Together, these projects will make up the largest offshore wind complex in the Baltic Sea, totaling over 1.1 GW in capacity.
This is also a landmark for Masdar as it marks its first offshore wind project in Germany and the company’s largest-ever euro-denominated financing.
The Baltic Sea holds an estimated 93 GW of offshore wind potential, and countries such as Germany, Poland, Sweden, and Estonia are racing to tap into this vast renewable energy source.
Ignacio Galán, Iberdrola’s Executive Chairman, expressed himself saying
“Today is an important landmark in our global partnership with Masdar. Partnerships such as this one are vital in accelerating energy security and competitiveness and working towards delivering ambitious climate targets. With Masdar, we have a partner who shares our vision and commitment.”
“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 to 2028 in transmission and distribution networks and in renewable energy, contributing to the delivery of the UK Government’s ambitious electrification plans. The completion of Baltic Eagle represents a new milestone in our partnership, reinforcing Iberdrola’s commitment to electrification and strengthening our presence in the Baltic Sea.”
€15 Billion Alliance to Expand Offshore Wind and Green Hydrogen
These back-to-back milestones reflect the strength of Masdar and Iberdrola’s partnership, launched in December 2023. With a €15 billion joint investment target, the collaboration aims to boost offshore wind and green hydrogen across major markets like the UK, Germany, and the US.
The East Anglia and Baltic Eagle projects not only highlight their leadership in renewable development but also help accelerate Europe’s offshore wind deployment goals. The alliance supports global efforts to triple renewable capacity by 2030, aligning with net-zero ambitions and climate targets.
Work is already underway to identify new joint ventures, with more projects expected to be announced in the coming years. Both companies see their partnership as a long-term strategy to strengthen clean energy infrastructure globally.
Masdar’s European Footprint Grows with 30 GW Target
As Masdar pushes toward its 100 GW global clean energy goal by 2030, Europe remains a strategic priority. In 2024, the company expanded its presence by acquiring Saeta Yield in Spain and TERNA ENERGY in Greece. These deals, alongside its offshore wind ventures, position Masdar to contribute up to 30 GW of clean energy capacity in the region.
Beyond its work with Iberdrola, Masdar has invested heavily in solar and wind projects across key European markets. This not only reinforces its role as a reliable, long-term partner but also boosts regional efforts to meet climate goals and energy security needs.
Furthermore, Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, also commented on this historic deal. He said,
“This landmark partnership underscores our commitment to driving Europe’s energy transformation and advancing global climate goals. Our strategic co-investments with Iberdrola in East Anglia THREE and Baltic Eagle demonstrate how ambitious cross-border partnerships can deliver transformative impact at scale. Together, we are setting a new benchmark for offshore wind collaboration, and we are looking forward to deepening this partnership as Europe accelerates its renewable energy targets.”
“Through this partnership, Masdar is reaffirming its long-standing commitment to the European energy transformation. From our roots in the UK since 2008 to our growing presence in Germany, we are proud to be part of some of the region’s most iconic renewable energy developments. Our co-investments in East Anglia THREE and Baltic Eagle exemplify how cross-border collaboration can accelerate impact at scale.”
Iberdrola Leads Renewable Investments and PPA Market
In 2024, Iberdrola invested €17 billion to support the global energy transition, including over €5.4 billion in renewables.
- This added 2,600 MW of green energy capacity, pushing the company’s total renewable portfolio past 44,000 MW.
The company remains a PPA market leader in Europe, having signed 1,250 MW worth of long-term energy deals with industrial partners in 2024 alone. These agreements support decarbonization in hard-to-abate sectors and ensure demand for new renewable generation.
Iberdrola’s green investments also drive economic growth, energy independence, and job creation, making the company a vital force in building Europe’s clean energy future.
Masdar and Iberdrola’s recent achievements represent a powerful blueprint for scaling clean energy through strategic global partnerships. With bold investments, a shared vision, and boots on the ground in key markets, these energy giants are shaping the next phase of the global energy transition.
