Masdar, Iberdrola Seal EUR 5.2 Billion Deal for UK Offshore Wind Farm

Abu Dhabi’s Masdar and Spain’s Iberdrola SA have agreed to co-invest EUR 5.2 billion (approx. USD 6.07 billion) in the 1.4 GW East Anglia III offshore wind farm in the UK, one of the largest offshore wind transactions of the decade.

Under the agreement, Iberdrola will sell a 50 percent  stake in the under-construction project to Masdar, making the two companies equal partners. Located 69 km off the Suffolk coast in the North Sea, East Anglia III is expected to generate enough electricity to power over 1.3 million homes once operational in 2026.

The project recently secured GBP 3.5 billion in financing from a consortium of 24 international banks, oversubscribed by 40 percent , according to a joint statement. The financing will cover a substantial portion of the total costs without impacting the balance sheets of either partner.

East Anglia III is part of Iberdrola’s broader East Anglia Hub, which also includes the operational 714 MW East Anglia I and planned East Anglia II (960 MW), scheduled to begin construction in 2027.

The project benefits from Contracts for Difference (CfDs) awarded under Allocation Rounds IV and VI, which guarantee stable revenue and shield developers from market volatility.

In 2024, Amazon committed to purchase 159 MW of capacity, about 700 GWh annually, from East Anglia III, signaling strong corporate interest in green energy procurement.

This collaboration is part of a GBP 15 billion strategic partnership between Iberdrola and Masdar signed in 2023, targeting joint investments in renewable projects across the UK, Germany, and the United States.

Separately, the two companies also announced the completion of the 476 MW Baltic Eagle wind farm in Germany, which will supply energy to 475,000 homes and prevent 800,000 metric tons of CO₂ emissions annually.

Ignacio Galan, Executive Chair of Iberdrola, said that the partnership reinforces the company’s strategic focus on the UK, where it plans to invest GBP 24 billion by 2028 in renewables and grid networks. Masdar Chair Sultan Al Jaber emphasised that offshore wind will play a vital role in the global energy transition, especially amid rising demand from AI and emerging markets.

The partners also noted that further co-investment opportunities are being explored under their GBP 15 billion alliance.