Masdar and Iberdrola have announced a significant co-investment of €5.2 billion ($6.1 billion) in the East Anglia THREE offshore wind farm, positioned 69 kilometers off the coast of Suffolk, England. This project is the second buildout in the East Anglia offshore wind farm trilogy. It’s an important part of the much bigger East Anglia Hub joint project. East Anglia THREE is a 1.4 gigawatt (GW) powerhouse. Once complete, this massive project will deliver clean, affordable electricity to more than one million British homes.
The two energy giants will each have a 50% stake in the East Anglia THREE project. We managed to raise €4.1 billion ($4.8 billion) from a 24-strong international banking consortium. This financing is a huge shot in the arm for our program. This investment commitment is a clear indication of investor confidence in the project’s viability and its role in advancing the state’s renewable energy objectives.
Project Structure and Operations
East Anglia THREE would be an offshore wind farm. It would include an onshore cable pathway that would carry the electricity to an offshore converter station in Bramford. The project is currently expected to open full service in the fourth quarter of 2026.
As East Anglia THREE has developed the strongest infrastructure. It has further achieved revenue certainty by obtaining a 15-year contract for difference (CfD) indexed to Consumer Price Index (CPI) inflation. This structure is intended to offer fiscal certainty and predictability to project stakeholders and investors.
In March 2024, East Anglia THREE signed a PPA with Amazon. This agreement further demonstrates their commitment to serve some of the largest companies in the world with clean energy.
Strategic Implications
Ignacio Galán, Iberdrola’s executive chairman, emphasized the importance of this partnership, stating:
“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 £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.”
This highly strategic investment is a huge win for the companies themselves. It’s in line with the federal government’s stated objective of increasing renewable energy generation and reducing carbon emissions.
Mohamed Jameel Al Ramahi, CEO of Masdar, echoed this sentiment, noting:
“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.”