€15 billion clean energy alliance powers ahead with East Anglia THREE investment and Baltic Eagle energisation….reports Asian Lite News
Masdar, the UAE-based global clean energy powerhouse, and Iberdrola, one of the world’s largest energy firms, have marked two pivotal milestones in their strategic partnership with a major co-investment in the UK’s East Anglia THREE offshore wind farm and the successful full energisation of the Baltic Eagle project in Germany.
The developments reflect the growing momentum behind Europe’s offshore wind ambitions and further advance the two companies’ €15 billion strategic alliance aimed at fast-tracking clean energy deployment across key markets in Europe and beyond.
Announced at the end of 2023, the Masdar–Iberdrola partnership ranks among the largest bilateral collaborations in the global renewable energy sector. It has already begun delivering on its promise, as the partners take bold steps to help triple global renewable capacity by 2030 in line with international climate goals.
One of decade’s largest offshore wind deals
In one of the largest offshore wind transactions of the decade, Masdar and Iberdrola have agreed to co-invest in the 1.4GW East Anglia THREE wind farm, located off the Suffolk coast in the UK. Each company will hold a 50 percent stake in the project and share governance responsibilities. All conditions precedent have been met, and the deal is expected to formally close soon.
The financing structure for the project was finalised on July 9, with £3.5 billion (approximately €4.1 billion) raised from 24 international banks. Notably, the deal was oversubscribed by 40 percent—signalling strong global investor confidence in the UK’s offshore wind sector. The facility will fund a significant portion of the project’s cost without impacting the financial statements of either partner, thanks to its non-consolidated structure.
Once operational by the fourth quarter of 2026, East Anglia THREE will become one of the world’s largest offshore wind farms, capable of generating enough clean electricity to power 1.3 million homes in the UK. The project has secured long-term revenue certainty through a 15-year, CPI-linked Contract for Difference (CfD) from the UK government, along with a separate Power Purchase Agreement (PPA) with Amazon, signed earlier in 2024.
In addition to delivering clean energy, the project is set to support over 2,300 jobs during the construction phase and provide around 100 long-term positions throughout its operational lifetime.
Baltic Eagle fully energised
Masdar and Iberdrola also announced the completion and full energisation of the 476MW Baltic Eagle offshore wind farm in the German Baltic Sea. This project, the first to be completed under their strategic alliance, marks Masdar’s debut in the German market and represents its largest euro-denominated financing to date.
Baltic Eagle will provide renewable electricity to approximately 475,000 households in Germany, offsetting nearly 800,000 tonnes of carbon dioxide emissions annually. The wind farm will play a critical role in helping Germany achieve its energy transition targets, particularly as it moves to reduce dependency on fossil fuels amid ongoing geopolitical uncertainty.
Voices from the Top
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, hailed the developments as transformative. “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,” Al Jaber said.
He also pointed to the rising demand for energy driven by AI technologies and emerging markets, adding: “Projects such as these have never been more critical.”
Iberdrola’s Executive Chairman Ignacio Galán echoed the sentiment, noting that the partnership with Masdar allows Iberdrola to accelerate its strategic focus in the UK, where the company is investing £24 billion by 2028 in transmission, distribution networks and renewables. “This joint venture contributes directly to the UK government’s ambitious electrification and energy security goals,” he said.
Masdar CEO Mohamed Jameel Al Ramahi said the partnership demonstrated “unwavering commitment” to Europe’s energy transformation and global climate targets. “We’re proud to stand alongside Iberdrola in advancing large-scale renewable projects that have real impact,” he said.
More projects in the pipeline
The two companies plan to continue building on the momentum. Joint investment opportunities are already being explored across Europe and in other international markets, particularly in offshore wind and green hydrogen. The total anticipated investment value for the partnership remains pegged at €15 billion.
The progress underscores Masdar’s ambition to grow its renewable energy capacity to 100GW globally by 2030 and reflects Iberdrola’s ongoing efforts to lead Europe’s clean energy transition.
Together, Masdar and Iberdrola are not just reshaping Europe’s renewable landscape — they’re setting a new standard for global collaboration in the transition to a low-carbon future.
