Spanish energy giant Iberdrola has finalised the sale of a 49% stake in its 476MW Baltic Eagle offshore wind farm to United Arab Emirates-based renewable energy developer Masdar.

The transaction, announced in July 2023, valued Baltic Eagle at $1.68bn (€1.6bn).

Iberdrola now holds a majority interest of 51% in the project. It will control and manage the assets and offer operational, maintenance and other corporate services.

The agreement between Iberdrola and Masdar forms part of a larger commitment between the two companies.

The deal is strategically significant for both, reinforcing their alliance and opening up new opportunities to invest in renewable energy.

Baltic Eagle’s construction began in 2022, 30km offshore Pomerania in the German Baltic Sea.

The wind farm will feature 50 Vestas V174-9.5MW turbines and will be operational by the end of 2024. The project will generate 1.9TWh of clean electricity annually, enough to power 475,000 German households while avoiding 800,000 tonnes of CO₂ emissions annually.

The project secured a minimum regulated tariff of €64.6 per megawatt-hour for an initial 20 years. Long-term contracts are in place for the sale of its entire output.

Baltic Eagle is the second major offshore wind project by the Spanish company in the region, after the commissioning of the 350MW Wikinger offshore wind farm in 2017.

Iberdrola also developed the Wikinger Süd project, with 10MW of capacity, in German waters in the Baltic Sea.

With these three projects, Iberdrola’s installed capacity in the Baltic Sea will be 836MW, with a total investment of $2.63bn (€2.5bn).