Danish Export Credit Agency Provides GBP 500M Guarantee for Iberdrola's UK Wind Farm Project
In a significant move for the renewable energy sector, the Export and Investment Fund of Denmark (EIFO) has extended a project finance guarantee of £500 million (approximately $670 million) for the development of ScottishPower Renewables' East Anglia Three offshore wind farm in the UK. This guarantee is set to secure financing for the project, reduce financial risk for investors, and support the green energy transition.
ScottishPower Renewables, the UK arm of Iberdrola, is currently developing and building the East Anglia Three offshore wind farm. Once fully commissioned, this 1.4 GW wind farm will deliver enough clean energy to power 1.3 million British homes, according to Iberdrola. The project is scheduled to enter initial operation in the fourth quarter of 2026 and will feature 95 Siemens Gamesa 14+ MW wind turbines.
The financial guarantee from EIFO is essential for the project's success. It helps secure financing for the project, which has an estimated value of around £4.5 billion, by reducing the financial risk for other investors and lenders involved. This reduced risk increases investor confidence, enabling project delivery and supporting broader climate goals.
Moreover, the guarantee exemplifies how export finance can support the green energy transition by backing renewable infrastructure overseas. It showcases Denmark's commitment to supporting climate-friendly investments internationally. The East Anglia Three offshore wind farm will be a significant contributor to expanding clean energy capacity and meeting renewable energy targets in the UK.
In addition to EIFO's involvement, Iberdrola and Masdar have entered into a co-investment agreement for the East Anglia Three offshore wind farm. This is the first co-investment for the project, and it follows EIFO's extension of the first project finance guarantee to an Iberdrola-owned entity. The co-investment agreement involves Masdar investing in the East Anglia Three offshore wind farm alongside Iberdrola.
Construction for the East Anglia Three offshore wind farm has already started, with foundation and export cable installation currently underway. The wind farm is located 69 kilometres off the coast of Suffolk. The project has attracted the attention of various international banks, including 23 banks that were invited exclusively by Iberdrola to participate in the East Anglia Three offshore wind farm's GBP 3.6 billion non-recourse project financing.
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In conclusion, EIFO's £500 million guarantee is a critical financial instrument that facilitates investment in the East Anglia Three offshore wind farm, boosting investor confidence, enabling project delivery, and supporting broader climate goals. The project's success is a testament to the growing importance of renewable energy and the collaborative efforts of organisations committed to a sustainable future.
[1] Iberdrola Press Release: Iberdrola secures financing for East Anglia Three offshore wind farm [2] EIFO Press Release: EIFO signs €576 million project finance guarantee for the East Anglia Three offshore wind farm [3] offshoreWIND.biz: EIFO to provide €576 million project finance guarantee for East Anglia Three offshore wind farm [4] ScottishPower Renewables: East Anglia Three Offshore Wind Farm [5] Renewables Now: Denmark's EIFO extends financing guarantee for East Anglia Three offshore wind farm
The financial guarantee from EIFO enables Securing financing for the East Anglia Three offshore wind farm, which has an estimated value of around £4.5 billion, by reducing the financial risk for other investors and lenders involved.
The co-investment agreement between Iberdrola and Masdar supports the East Anglia Three offshore wind farm's progress, as it involves Masdar investing in the project alongside Iberdrola.
OffshoreWIND.biz offers companies in the offshore wind industry numerous advertising and branding opportunities, providing a platform for companies to showcase their involvement and commitment to the sector.
