Renewable energy company RWE and global investment firm KKR have finalised an investment of around £12bn ($16.1bn) to jointly develop two offshore wind projects with a combined capacity of 2.8GW in the British North Sea.
The partnership aims to deliver the Vanguard West and Vanguard East wind farms, each expected to provide 1.4GW of renewable power.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
KKR acquired a 50% stake in both wind farms to form the partnership, with both companies providing equity contributions.
The projects have secured non-recourse project financing worth £11.1bn in cash facilities and £1.7bn in ancillary facilities from a group of 35 international banks.
This marks the largest non-recourse project financing in UK offshore wind to date.
Among the lenders are the UK’s National Wealth Fund, with a £1bn commitment, and export credit agencies Euler Hermes of Germany and Denmark’s EIFO.
RWE led the financing process, collaborating with KKR Capital Markets earlier in the year to execute the arrangement.
The financing package drew significant interest from a broad range of banks and met its target.
The structure reflects a mix of long-term private capital and international lender participation in major UK energy infrastructure developments.
RWE CEO Markus Krebber said: “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.
“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 2.8GW, the projects will strengthen domestic electricity generation and make an important contribution to a resilient energy system, energy security and affordability.”
The Vanguard West and Vanguard East projects will be located 50-80km off the coast of Norfolk in East Anglia. Once operational, they are anticipated to power the equivalent of around three million UK homes.
Both sites are expected to be commissioned by 2030.
Preparatory onshore work, including cable installation and substation construction, is underway, while offshore construction is set to commence in early 2027.
Foundation installation for Vanguard West is projected for the first half of that year, followed by work on Vanguard East.
In January 2026, both projects secured 20-year inflation-indexed contracts for difference (CfDs) during the UK’s Allocation Round 7. Each was awarded a strike price of £91.20 per megawatt hour, based on 2024 prices.
The wind farms will use coordinated grid infrastructure to limit environmental and community impacts during development.
