RWE, KKR Close US$15.9 Billion Deal For 2.8 GW Of UK Offshore Wind

RWE and KKR have reached financial close on the Vanguard West and Vanguard East offshore wind farms, a combined 2.8 GW investment of about US$15.9 billion in the British North Sea, including associated transmission infrastructure. Located 31 to 50 miles (5o to 80 km) off the Norfolk coast in East Anglia, the two 1.4 GW projects are expected to be fully commissioned in 2030 and could supply the equivalent of about 3 million UK homes.

KKR has completed its acquisition of a 50% equity stake in each project, formally establishing the 50/50 joint venture the companies first announced in January 2026. RWE will lead project delivery on behalf of the joint venture, while KKR is investing through capital accounts it advises. RWE acquired the projects in 2024 as part of its purchase of Vattenfall’s Norfolk Offshore Wind Zone.

The projects secured US$14.7 billion in non-recourse cash facilities plus US$2.2 billion in ancillary facilities from a consortium of 35 international banks, which the companies call the largest project financing ever in UK offshore wind. The UK’s National Wealth Fund committed US$1.3 billion, and Germany’s Euler Hermes and Denmark’s EIFO provided credit cover. It is the first UK offshore wind financing for both the National Wealth Fund and Euler Hermes. Lender demand was strong, with commitments covering the full targeted amount.

Both projects won Contracts for Difference (CfDs) in the UK’s Allocation Round 7 in January 2026. Each received a 20-year, inflation-indexed CfD at a strike price of US$120.5 per MWh in 2024 prices.

Onshore cable works and substation construction are well advanced, and the projects will use coordinated grid infrastructure designed to reduce environmental and community impacts. Offshore construction is set to begin in early 2027, starting with the first foundation installation at Vanguard West in the first half of the year, followed by Vanguard East.

“Our strategic partnership with KKR provides a strong foundation for the joint delivery of Vanguard West and Vanguard East, and is a vote of confidence in the UK as an attractive place to invest,” said Markus Krebber, chief executive officer of RWE AG. “Securing the largest ever project financing in UK offshore wind also demonstrates our lenders’ trust in these projects and our ability to deliver them. With a combined capacity of 2.8 gigawatts, the projects will strengthen domestic electricity generation and make an important contribution to a resilient energy system, energy security and affordability. Preparatory works are well advanced, putting us in a strong position to begin offshore construction in early 2027.”

“The UK has a significant opportunity to develop its critical infrastructure to support long-term economic growth and strengthen energy security, including through offshore wind,” said Vincent Policard, co-head of European infrastructure at KKR. “Delivering at this scale requires substantial private investment, and KKR brings long-term capital, global infrastructure expertise and the ability to support complex projects through construction and operation. Our work with RWE demonstrates how private capital can help turn the UK’s energy ambitions into reality, with these projects capable of powering around three million UK homes.”

“This major investment in UK renewables is a vote of confidence for building in Britain,” said UK Prime Minister Andy Burnham. “And it is great news for billpayers because every turbine we put up is power under British control, not at the mercy of events on the other side of the world. With coastal communities from Scotland to East Anglia powering Britain’s future, the places that host this energy benefit from the jobs and opportunities that it brings. Our National Wealth Fund means that public investment is working alongside private capital to build homegrown energy and bring a return for the taxpayer. Because for me, a clean energy future is one that brings down bills.”