UAE-backed energy company Masdar is reportedly poised to buy a stake in Scottish Power parent Ibredrola’s largest offshore wind farm, based in the North Sea.
According to local newspaper Cinco Dias, Spain’s Iberdrola could sell as much as a 49% stake in the East Anglia 3 project to Abu Dhabi-based Masdar.
This would be part of a €2 billion deal, reports said, marking the second between the pair made this year.
East Anglia 3 will have a capacity of 1.4GW - enough to power around 1.3 million homes.
Construction of this third wind farm in Ibredrola’s East Anglia Hub began last year and is set to begin producing power in 2026, according to the company.
Masdar, which is partially owned by the UAE’s sovereign wealth fund, already penned an exclusive deal to develop the 476MW Baltic Eagle wind farm off Germany’s coast with Iberdrola in June this year.
Though the latest deal is yet to be confirmed by either party, it would mark the latest move by Iberdrola to sell off part-ownership in the growing East Anglia Hub, with 40% of the first farm in the area acquired by Macquarie's Green Investment Group subsidiary in 2019.
The deal would also come as developers have been hit with rising costs and toughening conditions in the offshore wind sector, with rival firm Vattenfall previously shelving plans for one of its North Sea projects early this year.