RWE and KKR develop 2.8 GW offshore wind project in Britain

RWE and KKR completed a 50:50 joint venture to develop the Vanguard West and Vanguard East offshore wind farms in the British North Sea. The projects will have a combined generation capacity of approximately 2.8 gigawatts.

The construction of the wind farms and associated grid infrastructure requires an investment of approximately £12 billion. The funding comes from equity commitments by RWE and KKR, along with non-recourse project financing from a consortium of 35 international lenders.

Once operational by 2030, the two wind farms will generate enough electricity to power approximately three million British homes. The facilities will be located 50 to 80 kilometers off the coast of Norfolk in the East Anglia region.

British Prime Minister Andy Burnham said the investment demonstrates confidence in the country’s ability to deliver such projects. "Every wind turbine we build will generate electricity that we control – regardless of what is happening on the other side of the world," Burnham stated.

UK Energy Minister Miatta Fahnbulleh said the investment represents a vote of confidence in clean, domestically produced energy in the country.

Markus Krebber, CEO of RWE AG, said the strategic partnership creates a strong foundation for the joint development of both projects. "With the largest project financing to date for offshore wind in the UK, our lenders are demonstrating their confidence in the projects and our ability to implement them," Krebber stated.

KKR acquired 50% of each project, completing the joint venture transaction announced in January 2026.

The company is financing its investment through investment vehicles advised by KKR. RWE will manage project implementation on behalf of the joint venture.

Vincent Policard, Co-Head of European Infrastructure at KKR, said implementing projects of this scale requires significant investment. "Our partnership with RWE demonstrates the important contribution private capital can make to achieving the UK’s energy policy goals," Policard stated.

The financing package comprises cash loans totaling £11.1 billion and supplementary financing lines of £1.7 billion, making it the largest project financing for offshore wind in the UK to date.

The package includes a £1 billion commitment from the UK National Wealth Fund, along with loan guarantees from German bank Euler Hermes and Danish bank EIFO.

Both projects received 20-year, inflation-indexed, bilateral contracts for difference in the seventh UK tender round in January 2026. The price is £91.20 per megawatt hour based on 2024 prices.

Infrastructure work on land is well advanced. The first foundations for Vanguard West are scheduled to be installed in the first half of 2027, with offshore construction planned to begin in early 2027. Vanguard East will follow, with both wind farms expected to be fully operational by 2030.