Spanish electric utility Iberdrola has finalised a strategic agreement with Kansai Electric, Japan's second-largest electricity company, to co-invest in the 315MW Windanker offshore wind farm.

Located in the Baltic Sea, the project is valued at €1.28bn, with Iberdrola holding a majority 51% stake in the assets.

The wind farm, which is set to be operational in the final quarter of 2026, will feature 21 turbines with a unit capacity of 15MW.

The Spanish utility company will control and manage the assets, including providing operation, maintenance services and other corporate functions.

In addition to the Windanker project, both companies are partners in Electricity North West (ENW), a UK-based electricity distribution company.

Iberdrola acquired 88% of ENW last October, with Kansai holding the remaining 12% through a consortium.

The agreement follows a previous announcement in February between Iberdrola chairman Ignacio Galán and Kansai executive vice-president Toru Kuwahara.

Their expanded alliance is designed to accelerate electrification and power grid and renewable energy projects across multiple countries.

Windanker has already secured long-term contracts for 100% of its output, ensuring a stable revenue stream.

This strategic move highlights Iberdrola’s focus on alliances that drive growth, promote decarbonisation and maintain financial strength.

Earlier this month, Iberdrola received approval for its 315MW Windanker offshore wind farm from the German German Federal Maritime and Hydrographic Agency.

The approval paves the way for Iberdrola to start construction of the Windanker project in the Baltic Sea. The wind farm is expected to generate enough clean energy to power 315,000 households in the region.

The project is central to Iberdrola’s expansion in Germany and its third major offshore wind initiative there.