RWE, one of the world’s leading renewable energy companies, and KKR, a leading global investment firm, are jointly delivering theVanguard West and Vanguard East offshore wind projects in the British North Sea. Together, the projects represent one of the UK’s largest offshore wind developments, with a combined generation capacity of around 2.8 gigawatts.
The projects represent a total investment of around £12 billion, including the construction of the wind farms and their associated transmission infrastructure. The investment is supported by equity commitments from both RWE and KKR, alongside non-recourse project financing secured from a consortium of international lenders. Financial close has been reached for both projects.
Vanguard West and Vanguard East will add significant new generation capacity to the UK’s electricity system, making an important contribution to domestic energy security, while also delivering electricity at an affordable price for consumers. Once operational, they will have the capacity to supply the equivalent of around three million UK homes.
UK Prime Minister Andy Burnham said: “This major investment in UK renewables is a vote of confidence for building in Britain. 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.”
UK Energy Secretary Miatta Fahnbulleh said: “This is another vote of confidence in British homegrown, clean energy. Investment in offshore wind and clean power is creating quality jobs and rebuilding industry, while delivering the clean power we need to lower bills and reach net zero. As the world gathers at COP31, Britain is leading from the front as a renewable energy powerhouse, turning the fight against climate change into a brighter future for British companies, industrial communities, and future generations.”
Markus Krebber, CEO of RWE AG: “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 2.8 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.”
RWE and KKR have also completed the joint venture transaction announced in January 2026. KKR has acquired a 50% equity stake in each project, formally establishing the 50:50 joint venture. Both partners are committing equity to the projects, combining RWE’s extensive experience in developing and operating offshore wind farms with KKR’s long-term capital and global infrastructure investment expertise. KKR is funding the investment through capital accounts advised by KKR. The partners will bring together their expertise to jointly develop, construct and operate both wind farms, with RWE leading project delivery on behalf of the joint venture.
Vincent Policard, Co-Head of European Infrastructure at KKR, said: “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. 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.”
Project financing from a large consortium of international lenders
Financial close has been reached for both projects, securing a non-recourse project financing comprising £11.1 billion in cash facilities plus £1.7 billion in ancillary facilities from a consortium of 35 international banks – the largest ever project financing in UK offshore wind. The financing includes a £1 billion commitment from the UK’s National Wealth Fund and credit cover from Germany’s Euler Hermes and Denmark’s EIFO – marking the first participation in a UK offshore wind project financing for the UK’s National Wealth Fund and Euler Hermes. The National Wealth Fund, Euler Hermes and EIFO have played an important role in helping the projects meet their financing requirements. RWE launched the financing process on behalf of the joint venture and joined forces with the KKR Capital Markets team beginning of this year to execute the financing.
The financing attracted strong demand from a broad syndicate of lenders, with commitments successfully covering the targeted financing amount. Together with equity commitments from RWE and KKR, the financing package demonstrates the important role of long-term private capital and international financing partnerships in delivering major energy infrastructure projects in the UK.
The Vanguard projects secured Contracts for Difference (CfDs) in the UK’s Allocation Round 7. In January 2026, each project was awarded a 20-year inflation-indexed CfD at a strike price of £91.20 per megawatt hour in 2024 prices.
Major new wind power for the United Kingdom
Vanguard West and Vanguard East will be located between 50 and 80 kilometres off the Norfolk coast in East Anglia. Each project will have an installed capacity of 1.4 GW, giving a combined capacity of 2.8 GW.
Preparatory works are already well advanced for offshore construction, which is set to begin in early 2027. The first foundation installation for Vanguard West is planned for the first half of 2027, followed by Vanguard East. Full commissioning of both projects is expected in 2030. Onshore cable works and construction of the substations are well advanced. The projects will use coordinated grid infrastructure designed to reduce environmental and community impacts.
