In a landmark development for the renewable energy sector, Masdar, a global clean energy leader, and Iberdrola, one of the world’s largest energy companies, have successfully reached financial close on the 1.4-gigawatt (GW) East Anglia THREE offshore wind farm. This project stands as one of the most significant offshore wind transactions of the decade and signifies a robust collaboration between two industry giants. The partnership not only underscores the commitment of both companies to sustainable energy but also highlights the growing momentum in the global transition towards cleaner energy sources.
The financial framework for this ambitious project includes financing facilities totaling £3.6 billion (€4.1 billion) secured from 23 banks and the Danish Export Credit Agency (EIFO). This transaction, which is the largest ever undertaken by Masdar, has attracted an overwhelming response, being oversubscribed by more than 40 percent. Such a response from lenders reflects a strong confidence in the project’s viability and the operational excellence of its partners. The total project costs are estimated at approximately €5.2 billion, with the financing covering a substantial portion of these expenses.
A Sustainable Future: Ambitious Goals and Community Impact
Mohamed Jameel Al Ramahi, the Chief Executive Officer of Masdar, articulated the significance of this financing deal, emphasizing that it represents a substantial step forward in the partnership with Iberdrola. Al Ramahi noted, "The level and profile of investor interest in this financing deal reflects our position as a global leader in sustainable finance." This sentiment is echoed throughout the clean energy sector, where high-quality renewable assets garner significant investor interest. The East Anglia THREE project will not only support the UK’s ambitious energy transformation objectives but also enhance the overall landscape of renewable energy in Europe.
Located off the Suffolk coast in the UK, East Anglia THREE will soon rank among the world’s largest offshore wind farms, harnessing wind energy to power approximately 1.3 million British homes upon its anticipated operation in Q4 2026. This project promises long-term revenue security through a 15-year CPI-linked Contract for Difference (CfD) awarded in the UK Government’s AR4 and AR6 auctions. Additionally, a Power Purchase Agreement (PPA) with Amazon, signed in 2024, further solidifies the project's financial viability. Moreover, the construction phase is expected to create over 2,300 jobs, with 100 long-term roles sustained throughout the project's lifespan.
The co-investment in East Anglia THREE marks a pivotal moment in the strategic partnership between Masdar and Iberdrola. This €15 billion alliance aims to accelerate clean energy deployment across critical markets, including the United Kingdom, Germany, and the United States. As the world shifts towards renewable energy, initiatives like East Anglia THREE illuminate the path toward a sustainable future, showcasing the importance of collaboration in addressing global energy challenges.
