The 1.4 GWEast Anglia THREE offshore wind farm, which is off the coast of Suffolk in the United Kingdom, has achieved financial closure thanks to Masdar and Iberdrola. The project has gotten £3.6 billion (€4.1 billion) in funding, making it one of the biggest deals in the offshore wind industry in the last ten years and the biggest deal Masdar has ever done.
A group of 23 commercial banks and Denmark’s Export Credit Agency (EIFO) helped fund the financing facility. The credit was oversubscribed by more than 40%, which shows that global lenders have a lot of faith in the project’s fundamentals and its sponsors.
Costs and Income Security for the Project
The East Anglia THREE project is expected to cost a total of €5.2 billion. The finance will cover a large part of this, and the rest will come from stock and other sources.
A 15-year CPI-linked Contract for Difference (CfD) that the UK government acquired during Allocation Rounds 4 and 6 guarantees revenue predictability. Also, in 2024, a long-term Power Purchase Agreement (PPA) was struck with Amazon, which made the project even more bankable.
Timeline and Capacity for the Project
Construction is going on now, and the wind farm should be up and running by the end of 2026. When it’s done, it will be one of the two biggest offshore wind farms in the world, providing renewable power to almost 1.3 million British households.
The project is also planned to produce more than 2,300 jobs during construction and keep 100 employment going when it is finished.
A 50:50 Co-Investment and Strategic Partnership
Masdar and Iberdrola both own half of the East Anglia THREE asset and have the authority to run it together. The two firms announced a €15 billion strategic agreement in December 2023, and this investment is part of it. The goal of the cooperation is to speed up the usage of sustainable energy in important global markets including the UK, Germany, and the US.
Masdar CEOMohamed Jameel Al Ramahi commented, “The level and profile of investor interest in this financing deal — the largest we have ever signed at Masdar — reflects our position as a global leader in sustainable finance. This project is a key step in supporting the UK’s energy transition goals.”