RWE, KKR Finalise £12bn UK Offshore Wind Investment

German energy company RWE and global investment firm KKR have reached financial close on two major UK offshore wind projects representing approximately £12 billion in investment. Announced on 11 November 2026, the Vanguard West and Vanguard East wind farms will deliver a combined 2.8 gigawatts (GW) of renewable electricity capacity in the British North Sea, enough to power approximately three million UK homes annually. KKR has completed its acquisition of a 50% stake in each project, establishing an equal joint venture with RWE, while a consortium of 35 international banks has secured the largest non-recourse project financing package in UK offshore wind history.

 

Record £12.8 Billion Financing Package Secured

 

The financing comprises £11.1 billion in cash facilities and £1.7 billion in ancillary facilities, alongside equity commitments from RWE and KKR. The package includes a £1 billion commitment from the UK's National Wealth Fund and credit cover provided by Germany's Euler Hermes and Denmark's Export and Investment Fund (EIFO). The transaction marks the first time both the National Wealth Fund and Euler Hermes have participated in financing UK offshore wind projects.

The non-recourse financing structure allows the projects to raise debt primarily against their own assets and expected cash flows, limiting lenders' recourse to the sponsors. RWE initiated the financing process and later worked with KKR Capital Markets to secure commitments from international lenders. The total project investment of approximately £12 billion covers construction of both wind farms and associated transmission infrastructure.

 

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KKR Acquires 50% Stake in Vanguard Wind Projects

 

The completed transaction formalizes the joint venture announced in January 2026, with RWE and KKR each holding 50% ownership in Vanguard West and Vanguard East. Both companies will jointly develop, construct and operate the projects, with RWE responsible for leading delivery. KKR will contribute long-term infrastructure capital and investment expertise.

Both projects secured 20-year inflation-indexed Contracts for Difference (CfDs) under the UK's Allocation Round 7 in January 2026. Each was awarded a strike price of £91.20 per megawatt-hour in 2024 prices, providing long-term revenue certainty for the developments. Markus Krebber, CEO of RWE, said, "Securing the largest ever project financing in UK offshore wind also demonstrates our lenders’ trust in these projects and our ability to deliver them."

 

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Construction to Begin in 2027, Commissioning Targeted for 2030

 

Vanguard West and Vanguard East will be located between 50 and 80 kilometers off the Norfolk coast in East Anglia. Each wind farm will have an installed capacity of 1.4 GW, with offshore construction scheduled to begin in early 2027. The first foundation installations at Vanguard West are planned for the first half of 2027, followed by Vanguard East. Both projects are expected to be fully commissioned in 2030.

Onshore cable installation and substation construction are already progressing, with coordinated grid infrastructure designed to reduce environmental and community impacts. According to the UK government, the developments are expected to support more than 2,400 jobs during construction and operation. The projects will expand domestic renewable electricity generation while contributing to the UK's longer-term energy security and decarbonization objectives.

UK Prime Minister Andy Burnham described the investment as a significant development for domestic renewable energy. "Our National Wealth Fund means that public investment is working alongside private capital to build homegrown energy and bring a return for the taxpayer."

The financial close allows RWE and KKR to advance construction of one of the UK's largest offshore wind developments, supported by long-term power contracts, institutional capital and public financing. The next major milestone will be the start of offshore foundation installation in 2027, ahead of the planned commissioning of both projects in 2030.

 

Source: RWE