Masdar and Iberdrola have closed a joint investment deal for the 1400MW East Anglia 3 offshore wind farm in the UK, in what the companies called the largest offshore wind transaction of the decade.
Each partner will hold a 50% stake in the £5.2bn asset and exercise joint governance rights under the agreement, which forms part of their wider €15bn strategic alliance to scale offshore wind and green hydrogen projects across the UK, Germany and the US.
All conditions precedent have now been satisfied, and the transaction is expected to be finalised imminently.
The investment follows the signing of project financing for East Anglia 3 on 9 July, with 24 international banks committing approximately £3.5bn (€4.1bn) in a facility that was oversubscribed by 40%.
The financing covers a substantial share of the project’s estimated €5.2bn cost and will not require consolidation of debt in either company’s financial statements.
Located off the Suffolk coast, East Anglia 3 is scheduled to enter initial operation in the fourth quarter of 2026.
Once online, it will deliver enough clean electricity to supply 1.3 million British homes.
Revenue for the project is backed by a 15-year CPI-linked Contract for Difference awarded through the UK Government’s AR4 and AR6 auctions, alongside a power purchase agreement signed in 2024 with Amazon.
Construction of East Anglia 3 is expected to create over 2,300 jobs, with around 100 long-term roles supported across the project’s operational lifetime.
“Joining forces with Masdar in the East Anglia 3 offshore windfarm will allow Iberdrola to accelerate our strategic focus on the UK,” said Iberdrola executive chairman Ignacio Galán.
He added: “With Masdar, we have a partner who shares our vision and commitment.
“We are investing £24bn to 2028 in transmission and distribution networks and in renewable energy, contributing to the delivery of the UK Government’s ambitious electrification plans.”
Masdar chief executive Mohamed Jameel Al Ramahi said the deal demonstrated “how ambitious cross-border partnerships can deliver transformative impact at scale”.
“This landmark partnership underscores our commitment to driving Europe’s energy transformation and advancing global climate goals,” he said.
“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.”
Masdar chairman HE Dr Sultan Al Jaber said offshore wind would play a “crucial role in the global energy transformation”.
“Landmark developments like Baltic Eagle and East Anglia 3 are significant advances towards clean energy targets in major European nations,” he said.
“In a world where demand is surging due to exponential AI growth and the rise of emerging markets, projects such as these have never been more critical.”
Masdar and Iberdrola also confirmed full energisation of the 476MW Baltic Eagle wind farm in Germany, the first project to be completed under their clean energy partnership.
The project will supply electricity to approximately 475,000 households while avoiding around 800,000 tonnes of CO₂ emissions annually.
Located in the Baltic Sea, Baltic Eagle is part of Iberdrola’s German offshore wind cluster, which also includes the operational 350MW Wikinger and the 315MW Windanker project currently in development.
Galán said the completion of Baltic Eagle marked “a new milestone” for the partnership and reinforced Iberdrola’s presence in the region.
Masdar noted that Baltic Eagle is its first German offshore wind project, its first collaboration with Iberdrola to reach commercial status, and its largest ever euro-denominated financing.
Masdar’s footprint in Europe now includes offshore wind, onshore wind, and solar PV investments across major markets including the UK, Germany, Spain and Greece.
Its recent acquisitions of Saeta Yield in Spain and TERNA ENERGY in Greece are expected to contribute up to 30GW of clean energy capacity toward its global 100GW target by 2030.
Al Ramahi said: “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.”
Iberdrola invested €17bn in electricity grids and renewable energy in 2024, including over €5.4bn in renewables, adding 2600MW of capacity to exceed 44GW of green generation globally.
The company also signed 1250MW of new power purchase agreements last year, maintaining its position as the leader of the European PPA market.
Masdar and Iberdrola said they are continuing to identify new co-investment opportunities across their target regions, with future projects expected to further expand the €15bn alliance.