Abu Dhabi Future Energy Company (Masdar) and Iberdrola have agreed to co-invest $6.08 billion in the 1.4 GW East Anglia THREE offshore wind farm in the U.K., in what’s said to be the largest offshore wind transaction of the decade.
Under the agreement, each company will have a 50% stake in and co-governance of the asset, which will be pivotal in advancing Europe’s ambitious offshore wind development targets.
All the conditions precedent have been achieved and the transaction is expected to close shortly.
In addition, on July 9, the project financing for East Anglia THREE was signed for approximately $4.8 billion with 24 international banks. Oversubscribed by 40%, the facility is one of the largest ever such transactions. It will cover a substantial part of the total costs of the project.
Located off the Suffolk coast in the U.K., East Anglia THREE will become one of the world’s two largest offshore wind farms when it comes into initial operation in the fourth quarter of 2026, delivering 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 U.K. Government’s AR4 and AR6 auctions, as well as 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 roles supported across its lifetime.
“Joining forces with Masdar in the East Anglia THREE offshore windfarm will allow Iberdrola to accelerate our strategic focus on the UK, where we are investing $32.6 billion to 2028 in transmission and distribution networks and in renewable energy, contributing to the delivery of the UK Government’s ambitious electrification plans,” said Ignacio Galán, Iberdrola’s Executive Chairman.
To remind, Masdar and Iberdrola formed partnership in 2023, which represents one of the largest bilateral alliances in the global clean energy sector.