The Export and Investment Fund of Denmark (EIFO) has provided a £500 million project finance guarantee for the East Anglia Three offshore wind farm in UK. The project, developed by ScottishPower Renewables, is valued at £4.5 billion. Located off the Suffolk coast, East Anglia Three is an expansion of the East Anglia wind cluster and is scheduled to become operational by the end of 2026.
The wind farm will comprise 95 Siemens Gamesa turbines, each with a capacity of 14.7 MW, bringing the total installed capacity to 1,397 MW. The broader East Anglia cluster is expected to reach 3.8 GW. Apart from the funding guarantee, Danish companies are also involved in other aspects of the project execution. For instance, installation will be carried out by Cadeler, while NKT will deliver and install the cable infrastructure.
The project is financed through a project finance structure backed by 23 international financial institutions, alongside the EIFO guarantee. Moreover, it has secured £3.6 billion in project financing through a structure comprising approximately 70 per cent senior debt and 30 per cent equity from Iberdrola’s shareholders.
REGlobal’s Views: Iberdrola subsidiary, ScottishPower Renewables, has a large pipeline in the offshore wind space and the commissioning of this massive project will establish the company as one of the leading firms in the UK’s offshore wind landscape. The project has been successful in getting investor interest from different parts of the world. The project benefits from long-term revenue security through a 15 year Contract for Difference of UK Government and also a power purchase agreement with Amazon.
