British officials have welcomed Masdar's tie-up with a major Spanish electricity company to back the world's second-largest offshore wind project, off the coast of England.
East Anglia Three is set to deliver electricity to power 1.3 million homes from late 2026 after a €5.2 billion ($6 billion) co-investment, one of the largest offshore wind transactions in this decade.
Under the agreement, each company will hold a 50 per cent share in the East Anglia Three project.
“Masdar and Iberdrola are continuing to forge one of the largest and most powerful strategic clean energy partnerships to accelerate capacity growth in Europe and worldwide," said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and chairman of Masdar. "With demand surging due to exponential AI growth and the rise of emerging markets, projects such as these have never been more critical."
Masdar chairman
Edward Hobart, British ambassador to the UAE, welcomed the announcement on Friday. "Great to see Masdar’s ongoing commitment to the UK’s energy transition," he said.
A 15-year supply deal with the UK underpins the project. Through annual auctions, the country invites developers of renewable projects to bid for government-backed price guarantees for the electricity produced, called Contracts for Difference (CfDs).
The sixth annual UK auction in 2024 resulted in electricity price contracts for offshore wind of £54.20 to £58.90 ($73.40 to $79.80) per megawatt hour in 2012 prices, government data showed. This was significantly higher than the £44 per MWh offered for offshore wind in last year's auction.
Stockbroker Jefferies estimated the price awarded would be worth between £82.60 and £89.70/MWh in 2027 prices – when the first projects would be expected to go online – when inflation was included.
The financing agreement for the East Anglia Three project was signed for about £3.5 billion, with 24 international banks. Oversubscribed by 40 per cent, the facility is one of the largest of such transactions. It will cover a substantial part of the total costs of the project, without consolidating debt in any of the partners’ financial statements.
Located off the Suffolk coast, East Anglia Three is set to come into initial operation in the fourth quarter of 2026.
As Masdar advances towards its target of 100 gigawatts of global clean energy capacity by 2030, its European footprint continues to expand. Following last year's landmark acquisitions of Saeta Yield in Spain and Terna Energy in Greece, Masdar is expected to contribute up to 30 gigawatts of capacity and support the region’s clean energy goals.
In addition to its partnership with Iberdrola, Masdar has invested in wind and solar projects across key European markets.
Masdar and Iberdrola have also announced completion of the Baltic Eagle offshore wind farm in the German Baltic Sea. The first project of the strategic partnership is a 476MW wind farm to boost Germany’s clean energy ambitions. It will supply about 475,000 households with renewable energy.
High-level forum
Masdar convened a leadership business forum in Madrid this week to strengthen partnerships and position the company for its next phase of growth in the Iberian market.
Led by Dr Al Jaber, the forum assembled senior representatives from Spanish and Portuguese government organisations, regulatory bodies, utilities, institutional investors and technology providers. The discussions centred on accelerating the Iberian Peninsula’s energy transformation and reinforcing Spain’s role as a strategic hub within Masdar’s European portfolio.
Masdar’s European investments are highly diversified. In addition to a $1.4 billion acquisition of Saeta, Masdar concluded a €3.2 billion acquisition of Terna Energy in Greece and entered a €1.7 billion strategic partnership with Endesa in Spain, acquiring a 49.99 per cent stake in a 2.5-gigawatt portfolio of renewable assets – one of Spain’s largest clean-energy transactions.
Since its was established in 2006, Masdar has developed and partnered in projects in more than 40 countries, with a mandate to increase its renewable energy portfolio capacity to 100 gigawatts by 2030.
