Masdar and Iberdrola
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate and Iberdrola’s executive chairman Ignacio Galan. Image Credit: Supplied

Dubai: Masdar has joined Spanish clean energy firm Iberdrola to co-invest in the 476-megawatt (MW) Baltic Eagle offshore wind farm in the German Baltic Sea. Iberdrola will retain a majority 51 per cent stake in the asset. The deal is expected to accelerate green energy security in Europe.

According to the joint statement issued by the companies, the Baltic Eagle wind farm is valued at approximately 1.6 billion euros. Iberdrola will control and manage the asset, providing operation and maintenance services and other corporate services.

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Baltic Eagle will consist of 50 wind turbines built on monopile foundations, each with a unit capacity of 9.53 MW. Anticipated annual production is 1.9 terawatt-hours (TWh), enough clean energy to meet the electricity demands of 475,000 homes, saving 800,000 tons of CO2 released into the atmosphere annually.

The wind farm, scheduled to come into initial operation at the end of 2024, has a minimum regulated tariff of 64.6 euros/MWh for the first 20 years. In addition, 100 per cent of its production has already been sold via long-term contracts.

“This landmark agreement between Masdar and Iberdrola will harness Germany’s abundant wind power in the Baltic Sea and bring electricity to nearly half a million homes while cutting emissions,” said Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate.

The deal is also crucial for the UAE hosting COP28, as Masdar’s investment furthers the ambitions of the Energy Security and Industry Accelerator (ESIA) agreement between the UAE and Germany signed last year. “As the UAE looks ahead to hosting COP28, partnerships such as this show how we can hold back emissions without holding back progress,” added Al Jaber.

Ignacio Galan, Iberdrola’s Executive Chairman, said: “This a major project that will help to drive forward green energy security in Europe, reduce emissions for homes and businesses, and support thousands of highly skilled jobs.”

In September 2022, the UAE and Germany signed an agreement to advance projects of joint interest on areas including energy security, decarbonisation and climate action. The Energy Security and Industry Accelerator Agreement (ESIA) signed between the two countries involved plans for Masdar to explore offshore wind opportunities in the Baltic Sea to support Germany’s clean energy goals.