Key Takeaways
- • RWE and KKR are jointly delivering the Vanguard West and Vanguard East offshore wind projects in the British North Sea, with combined capacity of about 2.8 GW and a total investment of around £12 billion including transmission infrastructure.
- • Financial close has been reached on a non-recourse project financing of £11.1 billion in cash facilities plus £1.7 billion in ancillary facilities from 35 international banks, described as the largest ever project financing in UK offshore wind.
- • KKR has acquired a 50% equity stake in each project, formally establishing a 50:50 joint venture with RWE, with RWE leading project delivery on behalf of the joint venture.
- • The projects hold 20-year inflation-indexed Contracts for Difference from UK Allocation Round 7 at a strike price of £91.20/MWh in 2024 prices, and are scheduled for full commissioning in 2030 with offshore construction beginning in early 2027.
- • The National Wealth Fund committed £1 billion, and Euler Hermes and EIFO provided credit cover, marking the first participation of the National Wealth Fund and Euler Hermes in a UK offshore wind project financing.
Summary
RWE and KKR have reached financial close on Vanguard West and Vanguard East, two offshore wind projects located 50 to 80 kilometres off the Norfolk coast in East Anglia. Each project will have an installed capacity of 1.4 GW, for a combined 2.8 GW that the companies say can supply around three million UK homes once operational. The total investment is around £12 billion, including the wind farms and associated transmission infrastructure.
KKR has acquired a 50% equity stake in each project, formally completing the 50:50 joint venture with RWE that was announced in January 2026. KKR is funding its investment through capital accounts advised by KKR. Under the joint venture, the partners will jointly develop, construct and operate both wind farms, with RWE leading delivery. Markus Krebber, CEO of RWE AG, described the KKR partnership as a vote of confidence in the UK as an investment destination. Vincent Policard, Co-Head of European Infrastructure at KKR, said private capital is needed at this scale.
The non-recourse project financing comprises £11.1 billion in cash facilities and £1.7 billion in ancillary facilities, provided by a consortium of 35 international banks. The package includes a £1 billion commitment from the UK's National Wealth Fund, and credit cover from Germany's Euler Hermes and Denmark's EIFO. According to the release, commitments covered the targeted financing amount, reflecting strong lender demand.
The projects secured Contracts for Difference in UK Allocation Round 7, with each awarded a 20-year inflation-indexed CfD in January 2026 at £91.20 per megawatt hour in 2024 prices. Preparatory onshore works, including cable installation and substation construction, are well advanced. The first foundation installation for Vanguard West is planned for the first half of 2027, followed by Vanguard East, with full commissioning expected in 2030.
UK Prime Minister Andy Burnham and Energy Secretary Miatta Fahnbulleh welcomed the investment, citing energy security, bill reduction and jobs in coastal communities. The government framed the projects as part of the UK's clean energy push ahead of COP31.
KKR has acquired a 50% equity stake in each project, formally completing the 50:50 joint venture with RWE that was announced in January 2026. KKR is funding its investment through capital accounts advised by KKR. Under the joint venture, the partners will jointly develop, construct and operate both wind farms, with RWE leading delivery. Markus Krebber, CEO of RWE AG, described the KKR partnership as a vote of confidence in the UK as an investment destination. Vincent Policard, Co-Head of European Infrastructure at KKR, said private capital is needed at this scale.
The non-recourse project financing comprises £11.1 billion in cash facilities and £1.7 billion in ancillary facilities, provided by a consortium of 35 international banks. The package includes a £1 billion commitment from the UK's National Wealth Fund, and credit cover from Germany's Euler Hermes and Denmark's EIFO. According to the release, commitments covered the targeted financing amount, reflecting strong lender demand.
The projects secured Contracts for Difference in UK Allocation Round 7, with each awarded a 20-year inflation-indexed CfD in January 2026 at £91.20 per megawatt hour in 2024 prices. Preparatory onshore works, including cable installation and substation construction, are well advanced. The first foundation installation for Vanguard West is planned for the first half of 2027, followed by Vanguard East, with full commissioning expected in 2030.
UK Prime Minister Andy Burnham and Energy Secretary Miatta Fahnbulleh welcomed the investment, citing energy security, bill reduction and jobs in coastal communities. The government framed the projects as part of the UK's clean energy push ahead of COP31.
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