Tuesday 5 December 2023

#UAE takes big stakes in struggling UK offshore wind market

UAE takes big stakes in struggling UK offshore wind market

The United Arab Emirates is set to take a large minority stake in a second UK offshore wind farm in the space of a week, as the Gulf state seeks to capitalise on difficult conditions in the industry to expand in Britain. 

The proposed investment in the new East Anglia Three offshore wind farm, which state-backed renewables company Masdar intends to finalise in the first quarter, is among a string of deals that oil-reliant UAE has signed at the COP28 climate conference, as it seeks to boost its green credentials. 

The proposed investment also comes amid scrutiny of Emirati investment in other UK assets, including its part in an attempt to purchase the Telegraph Media Group. 

Masdar, which is chaired by COP28 president Sultan al-Jaber, hopes to buy up to a 49 per cent stake in the 1.4 gigawatt wind farm under construction off the Norfolk coast — set to be one of the UK’s largest — from Spanish energy company Iberdrola. 

The decision to back the project, due to start producing power in 2026, shows that the UAE is prepared to invest in projects that many developers believe have become uneconomical after government contracts locked in low prices for the electricity they produce.

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