Denmark’s EIFO to Provide £500m Guarantee for ScottishPower Renewables’ East Anglia Three Offshore Wind Farm

Denmark’s Export and Investment Fund (EIFO) has announced its commitment to provide a £500m ($672m) project finance guarantee for the development of ScottishPower Renewables’ East Anglia Three offshore wind farm in the UK. This guarantee will play a crucial role in financing a portion of the project’s total cost, estimated at approximately £4.5bn.

The East Anglia Three wind farm, located off the coast of Suffolk, is a key component of the East Anglia wind cluster and is scheduled to be operational by the end of 2026. With 95 14.7MW wind turbines, the wind farm will have an installed capacity of nearly 1.4GW, generating clean energy for over 1.3 million homes. The broader East Anglia wind cluster is anticipated to have a total capacity of 3.8GW.

Key partners involved in the project include Cadeler, responsible for the installation of the turbines, and NKT, tasked with delivering and installing the cable infrastructure.

ScottishPower Renewables, a subsidiary of Spanish energy giant Iberdrola, has traditionally financed projects independently. However, for the East Anglia Three project, the company specifically sought EIFO’s participation.

Jose Sainz Armanda, CFO of Iberdrola, commented on the project finance structure, stating, “It is a project finance structure backed by 23 international financial institutions, plus the significant participation of EIFO, which adds an additional level of strength. It reflects not only the quality of the project, but also Iberdrola’s ability to mobilise capital with key international players such as EIFO.”

The financing consortium includes prominent banks such as BBVA, HSBC, ING, NatWest, SMBC, MUFG, and others. Crédit Agricole CIB and MUFG served as financial advisors for the transaction, with A&O Shearman acting as legal advisors to the borrower.

This collaboration underscores the growing importance of international partnerships in funding large-scale renewable energy projects and highlights the commitment of industry leaders to driving the transition towards sustainable energy sources.