Renewable energy producer RWE and global investment firm KKR have finalized a 50:50 joint venture to construct the 2.8 GW Vanguard West and Vanguard East offshore wind developments in the UK North Sea, securing financial close on a total project investment of approximately £12 billion ($16 billion).
The joint venture follows KKR’s acquisition of a 50 per cent equity stake in both projects, completing a transaction initially announced in January 2026. Under the ownership structure, RWE will lead project delivery, construction, and ongoing operations, combining its technical offshore experience with equity capital from infrastructure funds advised by KKR.
The projects reached financial close after securing £11.1 billion in non-recourse cash facilities alongside £1.7 billion in ancillary credit lines from a international syndicate of 35 commercial banks. The transaction represents the largest project debt package completed to date in the UK offshore wind sector. The debt facility includes a £1 billion cornerstone commitment from the UK National Wealth Fund, alongside export credit cover provided by Germany’s Euler Hermes and Denmark’s EIFO.
Located between 50 and 80 kilometres off the Norfolk coast in East Anglia, the developments comprise two adjacent 1.4 GW wind farms. Combined, the 2.8 GW generation complex will generate sufficient electricity to power the equivalent of approximately three million UK households upon full commercial operations.
Key financial, technical, and development milestones include:
- Capital structure: Total investment of around £12 billion funded through joint equity commitments from RWE and KKR alongside an £11.1 billion non-recourse project debt package.
- Offtake contracts: Both projects secured 20-year inflation-indexed Contracts for Difference (CfDs) in the UK’s Allocation Round 7 at a strike price of £91.20/MWh (in 2024 prices).
- Construction timeline: Offshore installation work is scheduled to commence in early 2027, with the first turbine foundation placement planned for the first half of 2027. Full commercial commissioning across both sites is targeted for 2030.
- Grid infrastructure: Features coordinated transmission assets designed to consolidate onshore substation connections and minimize coastal environmental impacts.
Markus Krebber, Chief Executive Officer of RWE AG, stated that reaching financial close on the largest debt package in UK offshore wind history demonstrates strong capital market support for large-scale generation assets. He noted that advanced site preparation places the joint venture on track to begin offshore installation in early 2027.
Vincent Policard, Co-Head of European Infrastructure at KKR, added that partnering with RWE illustrates how long-term institutional capital can be deployed alongside industrial operators to scale critical clean energy infrastructure, strengthen domestic generation security, and support net-zero targets.
