Masdar, a global leader in clean energy, and Iberdrola, one of the largest energy companies worldwide, have achieved two significant milestones: a €5.2 billion co-investment in the East Anglia THREE offshore wind farm in the UK—the largest offshore wind transaction of the decade and the full energization of their 476MW Baltic Eagle project in Germany.
These achievements represent substantial progress toward meeting offshore wind targets in Europe and the UK, as well as advancing the companies’ €15 billion strategic partnership aimed at accelerating clean energy deployment in key markets, including the UK, Germany, and the US.
Established in December 2023, the Masdar–Iberdrola partnership stands as one of the largest bilateral alliances in the global clean energy sector. Together, these projects promote the expansion of Europe’s offshore wind capacity and highlight the commitment of both companies to triple global renewable energy capacity by 2030.
East Anglia THREE Co-Investment Agreement in the UK
Masdar and Iberdrola will co-invest in the 1.4GW East Anglia THREE wind farm in the UK, marking the largest offshore wind transaction of the decade. Under this agreement, both companies will hold a 50% stake and share governance of the asset, which is crucial for advancing Europe’s ambitious offshore wind development goals. All conditions precedent have been met, and the transaction is expected to close soon.
Additionally, on July 9, project financing for East Anglia THREE was secured for approximately £3.5 billion (around €4.1 billion) with 24 international banks. This facility, oversubscribed by 40%, is one of the largest transactions of its kind, covering a significant portion of the total project costs, estimated at about €5.2 billion, without consolidating debt in the financial statements of either partner.
Located off the Suffolk coast in the UK, East Anglia THREE will become one of the world’s two largest offshore wind farms upon its initial operation in Q4 2026, generating enough clean energy to power 1.3 million British homes.
The project benefits from long-term revenue security through a 15-year CPI-linked Contract for Difference (CfD) awarded in the UK Government’s AR4 and AR6 auctions, alongside a Power Purchase Agreement (PPA) with Amazon signed in 2024. Over 2,300 jobs are expected to be created during construction, with 100 long-term positions supported throughout its lifespan.
Full Energization of Baltic Eagle in Germany
Masdar and Iberdrola have also celebrated the completion and full energization of the Baltic Eagle offshore wind farm in the German Baltic Sea.
As the first project finalized under their strategic partnership, the 476MW wind farm marks a significant advancement in supporting Germany’s clean energy goals, reinforcing the leadership of both companies in renewable energy development. It will provide renewable energy to approximately 475,000 households while reducing carbon dioxide emissions by around 800,000 tons annually.
Baltic Eagle is the second of Iberdrola’s three major wind farm projects in Germany, alongside Wikinger (350MW, currently in operation) and Windanker (315MW, in planning). Collectively, these offshore wind farms constitute Iberdrola’s Baltic Hub.
Baltic Eagle is Masdar’s inaugural project with Iberdrola, its first in Germany, and represents the company’s largest euro-denominated financing to date.
HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, stated: “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.”
Ignacio Galán, Iberdrola’s Executive Chairman, remarked: “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 wind farm 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.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, commented: “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.”
Masdar and Iberdrola will continue to jointly invest in future clean energy projects in Europe and other markets. Work to identify additional opportunities is already in progress, with the anticipated total value of joint investments in offshore wind and green hydrogen as part of the partnership estimated at €15 billion.
As Masdar moves toward its goal of 100GW of global clean energy capacity by 2030, its European footprint continues to grow. Following its landmark acquisitions in 2024 of Saeta Yield in Spain and TERNA ENERGY in Greece, it is expected to contribute up to 30GW of capacity and support the region’s clean energy objectives. In addition to its partnership with Iberdrola, Masdar has invested in wind and solar projects across key European markets, reinforcing its role as a long-term, trusted partner in the region.
Iberdrola invested €17 billion in electricity grids and renewable generation in 2024, further promoting the electrification of the economy and energy autonomy while fostering competitiveness and employment worldwide. Of this amount, over €5.4 billion was directed toward renewables across core geographies, adding 2,600 MW of capacity to exceed 44,000 MW of green energy. Iberdrola leads the European PPA market, signing 1,250 MW of PPAs and increasing long-term PPAs with key partners in 2024.
Source: Iberdrola
