Greenlogue/AP
Abu Dhabi’s renewable energy developer Masdar and Spanish energy giant Iberdrola have announced a joint investment totalling €5.2 billion in the UK’s 1.4 GW East Anglia Three offshore windfarm. The project, located around 69 km off the Suffolk coast, will be equally co-owned—50:50—by both firms and supported by a €4.1 billion financing package arranged by 24 international banks.
East Anglia Three forms part of a decade‑long partnership underpinned by a broader €15 billion strategic alliance between Masdar and Iberdrola, which spans offshore wind and green hydrogen projects across Europe and the United States. The deal represents one of the most significant offshore wind transactions this decade.
Construction finance closed on 9 July 2025, locking in €4.1 billion—approximately 79% of project’s total capital cost—raising expectations for smooth delivery into fourth-quarter 2026 operations. Development benefits from a 15‑year, inflation-linked Contract for Difference awarded in the UK government’s Auction Round 4 and 6, and a power purchase agreement inked with Amazon in 2024.
Upon commissioning, the offshore windfarm is expected to supply clean electricity to some 1.3 million British homes. The onshore cable corridor will transmit that output to the grid, reinforcing the UK’s growing offshore capacity. The build phase will generate around 2,300 jobs, with roughly 100 permanent roles for operations and maintenance teams.
Masdar, whose parent TAQA holds a 43% stake, has set an ambitious target of 150 GW of renewable capacity by 2030. This partnership in the UK complements its recent acquisition activity in Europe, including a $200 million investment in a Spanish solar portfolio and purchases of Greece’s Terna Energy and Spain’s Saeta Yield.
Iberdrola, already a major renewable investor in the UK via ScottishPower, plans to deploy €28 billion in Britain through 2028 across clean energy and grid modernisation. Earlier this week, the companies also marked the commissioning of their joint Baltic Eagle project in Germany: a 476 MW offshore windfarm energising 475,000 homes and reducing CO₂ emissions by approximately 800,000 tonnes annually.
Chief executives from both firms emphasised the strategic and operational strength of their alliance. Masdar’s Mohamed Jameel Al Ramahi described East Anglia Three as delivering “transformative impact at scale” and demonstrating how transnational cooperation can accelerate Europe’s energy transition. Iberdrola’s Ignacio Galán highlighted the alignment of the project with the firm’s commitment to energy security and meeting climate targets, reaffirming the importance of the UK market to the group’s growth ambitions.
Industry analysts note the project financing’s oversubscription by approximately 40%, underscoring strong investor confidence and signalling favourable market sentiment for large-scale renewables. The substantial backing without material balance sheet consolidation further enhances the appeal for future large offshore developments.
East Anglia Three represents a critical addition to the UK’s offshore wind infrastructure, currently gearing up to meet net‑zero targets with an installed capacity in excess of 13 GW by 2030. The 1.4 GW project will nearly double the capacity of the existing East Anglia One site, reinforcing the region’s North Sea energy hub credentials.
The rapid progression from deal signing to financing and project mobilisation reflects broader trends in the offshore wind sector, including increased collaboration between sovereign-backed developers and utility-scale investors. With offshore wind capacity in Europe expected to grow substantially in the late 2020s, East Anglia Three exemplifies the type of large‑scale project critical to decarbonisation and energy security.
____________________________________
This article first appeared on Greenlogue.com and is brought to you by Hyphen Digital Network
