Masdar and Iberdrola have agreed to co-invest in the 1.4 gigawatt (GW) East Anglia 3 offshore wind project in the UK, in what the companies described as the largest offshore wind transaction of the decade.
The £5.2 billion asset will be jointly owned, with each partner holding a 50% stake and exercising joint governance rights under the agreement. The deal is part of a wider €15 billion strategic partnership between the two firms to develop offshore wind and green hydrogen projects in the UK, Germany, and the United States.
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. “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 agreement “demonstrates how ambitious cross-border partnerships can deliver transformative impact at scale,” and described it as “a new benchmark for offshore wind collaboration.”
All conditions precedent have now been met, and the transaction is expected to be finalised imminently. The announcement follows the signing of project financing on July 9, with 24 international banks providing approximately £3.5 billion (€4.1 billion) in an oversubscribed facility. The financing covers a significant portion of the project’s cost and will not require debt consolidation on either company’s balance sheet.
Located off the coast of Suffolk, East Anglia 3 is scheduled to begin operations in the fourth quarter of 2026. Once online, it will supply clean electricity to approximately 1.3 million homes in the UK. Revenues will be supported by a 15-year CPI-linked Contract for Difference (CfD) awarded through the UK Government’s AR4 and AR6 auctions, as well as a long-term power purchase agreement signed with Amazon in 2024.
The project is expected to generate over 2,300 construction jobs, with around 100 long-term roles once operational.
Masdar chairman HE Dr Sultan Al Jaber said the East Anglia 3 and Baltic Eagle developments reflect “significant advances towards clean energy targets in major European nations,” adding that offshore wind would play a “crucial role in the global energy transformation.”
Masdar and Iberdrola also confirmed the full energisation of the 476MW Baltic Eagle offshore wind farm in Germany, their first completed project under the alliance. The wind farm is expected to provide power to 475,000 households and prevent around 800,000 tonnes of CO₂ emissions annually.
Baltic Eagle is part of Iberdrola’s offshore wind cluster in the Baltic Sea, which includes the operational 350MW Wikinger project and the 315MW Windanker site currently under development.
Masdar highlighted that Baltic Eagle represents its first offshore wind project in Germany and its largest euro-denominated financing to date. The company said its European portfolio now includes offshore wind, onshore wind, and solar PV assets in key markets such as the UK, Germany, Spain, and Greece.
Al Ramahi added: “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 reported €17 billion in investments in 2024, including €5.4 billion allocated to renewable energy. The company added 2.6GW of capacity last year, pushing its global green energy portfolio above 44GW. It also signed 1.25GW in new power purchase agreements, maintaining its leading position in Europe’s PPA market.
Masdar and Iberdrola said they will continue identifying co-investment opportunities under their €15 billion alliance, with future projects expected to expand their joint footprint across strategic clean energy markets.
