RWE and KKR Advance £12 Billion UK Offshore Wind Projects
RWE, one of the world’s leading renewable energy companies, and global investment firm KKR are partnering to deliver the Vanguard West and Vanguard East offshore wind projects in the British North Sea. The developments will have a combined generation capacity of approximately 2.8 gigawatts (GW), making them a major offshore wind development.
The projects represent an investment of around £12 billion, including construction of the wind farms and their associated transmission infrastructure. Funding combines equity commitments from RWE and KKR with non-recourse project financing arranged with international lenders. Financial close has been reached for both developments, securing the capital needed to progress towards construction.
Once operational, the wind farms are expected to generate enough electricity for around three million UK homes. Their output will strengthen domestic generation, support energy security and contribute to a resilient electricity system, while helping deliver affordable power.
UK Prime Minister Andy Burnham said the investment reflected confidence in Britain’s ability to build renewable energy infrastructure. He said turbines would increase power under British control and reduce exposure to international events affecting energy markets. He highlighted the jobs and opportunities that offshore wind can bring to coastal communities hosting the infrastructure.
UK Energy Secretary Miatta Fahnbulleh described the development as a vote of confidence in British clean energy. She said offshore wind supports quality jobs and industrial activity while providing electricity needed to lower bills and achieve net-zero goals. As the international community gathers at COP31, she said Britain is demonstrating renewable energy leadership and creating opportunities for companies, communities and future generations.
RWE AG Chief Executive Officer Markus Krebber said the partnership provides a strong foundation for delivery and reflects the UK’s attractiveness as an investment destination. He said the record financing demonstrates lenders’ confidence in the projects and the partners’ ability to deliver them.
RWE and KKR establish a 50:50 joint venture
The companies have completed the joint venture transaction announced in January 2026. KKR acquired a 50% equity stake in each project, establishing a 50:50 partnership with RWE. Both companies are committing equity, combining RWE’s offshore wind development and operating experience with KKR’s long-term capital and infrastructure investment expertise.
KKR is funding its investment through capital accounts advised by the firm. The partners will jointly develop, construct and operate both wind farms, with RWE leading project delivery for the joint venture. The arrangement combines their capabilities across development, construction and operations.
Vincent Policard, Co-Head of European Infrastructure at KKR, said the UK has an important opportunity to expand critical infrastructure, support long-term economic growth and strengthen energy security. He said offshore wind projects of this scale require substantial private investment, and that KKR contributes long-term capital and global infrastructure expertise to support complex projects through construction and operation.
Financing secured from 35 international banks
The financing comprises £11.1 billion in cash facilities and £1.7 billion in ancillary facilities from 35 international banks, making it the largest project financing in UK offshore wind.
The package includes a £1 billion commitment from the UK’s National Wealth Fund and credit cover from Germany’s Euler Hermes and Denmark’s Export and Investment Fund of Denmark (EIFO). It marks the first participation by the National Wealth Fund and Euler Hermes in a UK offshore wind project financing. The institutions helped the projects meet their financing requirements.
RWE launched the financing process for the joint venture and worked with KKR’s Capital Markets team from early 2026 to execute the transaction. Lender demand was strong, with commitments covering the targeted amount. Alongside partner equity, the package demonstrates how private capital and international financing can support major UK energy infrastructure.
Both projects secured Contracts for Difference (CfDs) in the UK’s Allocation Round 7. In January 2026, each was awarded a 20-year, inflation-indexed contract at a strike price of £91.20 per megawatt hour in 2024 prices, providing a long-term revenue framework.
Offshore construction scheduled to begin in 2027
Vanguard West and Vanguard East will be located between 50 and 80 kilometres off the Norfolk coast in East Anglia. Each project will have an installed capacity of 1.4 GW, giving the developments a combined capacity of 2.8 GW.
Preparatory works are well advanced, and offshore construction is scheduled to begin in early 2027. The first foundation installation for Vanguard West is planned for the first half of 2027, followed by Vanguard East. Full commissioning of both wind farms is expected in 2030.
Onshore cable works and substation construction are also progressing. The projects will use coordinated grid infrastructure designed to reduce environmental and community impacts while connecting the offshore generation to the electricity network.
With financial close achieved, the joint venture has secured its principal funding and is preparing for construction. The projects combine RWE’s offshore wind experience with KKR’s investment capabilities and lender support. When completed, they will add 2.8 GW of renewable generation to the UK system, supplying electricity for around three million homes.
Source Link: https://www.businesswire.com/
