RWE and KKR secure £12 billion offshore wind financing
By Jon CuthbertKey points
- RWE and KKR secured financing for two UK offshore wind farms worth approximately £12 billion, with a combined generation capacity of 2.8 GW.
- KKR acquired a 50% stake in Vanguard West and Vanguard East, establishing an equal partnership with RWE.
- Offshore construction is scheduled to begin in early 2027, with both projects targeting full commissioning in 2030 and enough capacity to power approximately three million UK homes.
RWE and KKR (NYSE:KKR) secured approximately £12 billion in financing for two UK offshore wind farms with a combined capacity of 2.8 gigawatts, following the completion of their 50:50 joint venture.
The projects, Vanguard West and Vanguard East, will each have 1.4 GW of installed capacity and are expected to supply electricity equivalent to the needs of approximately three million UK homes once operational.
"This major investment in UK renewables is a vote of confidence for building in Britain," said UK Prime Minister Andy Burnham.
RWE CEO Markus Krebber said the partnership with KKR provides a foundation for delivering the projects, adding that preparatory work is advanced enough to support the planned start of offshore construction in early 2027.
The financing package includes £11.1 billion in cash facilities and £1.7 billion in ancillary facilities from 35 international banks, alongside a £1 billion commitment from the UK's National Wealth Fund and credit support from Germany's Euler Hermes and Denmark's EIFO.
Both wind farms secured 20-year inflation-indexed Contracts for Difference at £91.20 per megawatt hour in 2024 prices during the UK's Allocation Round 7 in January 2026, providing a framework for their electricity revenues.
The projects are located 50–80 kilometres off the Norfolk coast in East Anglia, with foundation installation planned to begin at Vanguard West in the first half of 2027 before work progresses to Vanguard East.
Q&A / FAQ
Editorial note: The £12 billion figure represents the combined investment in both wind farms and their transmission infrastructure, not solely the bank financing. The £11.1 billion cash facilities and £1.7 billion ancillary facilities are separate components of the financing package. The three-million-home figure represents estimated equivalent generation capacity, not confirmed customer connections.
