Abu Dhabi Invests in Renewable Energy Projects in Europe
Masdar, the investment arm of the United Arab Emirates in renewables, has secured financing to acquire 49% of the 476 MW Baltic Eagle wind farm, previously owned by Iberdrola. This marks the largest financing in euros for Masdar and its first project with the Spanish utility. The total loan package amounted to €488 million, with the participation of ABN AMRO, Credit Agricole CIB, ING, Santander, and Siemens Bank. Santander also acted as a financial advisor in the operation.
Strategic Partnerships and Expansion
The Baltic Eagle wind farm, valued at around €1.6 billion, is expected to start operating by the end of 2024, with a minimum regulated tariff of €64.6/MWh for the first 20 years. Additionally, 100% of its production has already been sold through long-term contracts with Telefonica, Holcim, and Salzgitter.
Masdar and Iberdrola signed a strategic agreement in July 2023 to co-invest in Baltic Eagle. At COP28, the two companies announced another agreement for a strategic partnership of €15 billion to evaluate the joint development of offshore wind and green hydrogen projects in key markets such as Germany, the UK, and the US.
Global Renewable Energy Expansion
Masdar has long been committed to promoting offshore wind projects worldwide. Their goal is to achieve a renewable energy portfolio of 100 GW by 2030, supporting the UAE’s goal to triple global renewable energy capacity by the end of this decade. This latest agreement with Iberdrola strengthens their position in the European renewable energy market and paves the way for further collaboration in the sector.