RWE and KKR have completed the equity close on the Vanguard West and Vanguard East offshore wind projects in the British North Sea, formally establishing the 50:50 joint venture announced in January 2026.

Joint Venture Formally Established

KKR has acquired a 50% equity stake in each project, with both partners committing equity to the developments. KKR is funding the investment through capital accounts advised by KKR. The partners will jointly develop, construct, and operate both wind farms, with RWE leading project delivery on behalf of the joint venture.

The two projects together represent one of the UK's largest offshore wind developments, with a combined generation capacity of around 2.8 gigawatts and a total investment of around £12 billion, including construction of the wind farms and their associated transmission infrastructure. Once fully commissioned in 2030, they will be capable of supplying the equivalent of around three million UK homes.

Largest Ever Project Financing for UK Offshore Wind

Financial close has been reached for both projects, securing a non-recourse project financing comprising USD 14.78 billion in cash facilities plus USD 2.26 billion in ancillary facilities from a consortium of 35 international banks, the largest ever project financing in UK offshore wind.

The financing includes a USD 1.33 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 both the National Wealth Fund and Euler Hermes.

RWE launched the financing process on behalf of the joint venture at the beginning of this year, joining forces with the KKR Capital Markets team to execute the financing. The financing attracted strong demand from a broad syndicate of lenders, with commitments successfully covering the targeted financing amount.

Construction Timeline

Onshore infrastructure works are already well advanced, with offshore construction set to start in early 2027. Markus Krebber, CEO of RWE AG, said preparatory works put the company in a strong position to begin offshore construction on schedule.

Political Endorsement

UK Prime Minister Andy Burnham described the investment as a vote of confidence for building in Britain and good news for billpayers. "Every turbine we put up is power under British control, not at the mercy of events on the other side of the world," he said, adding that the National Wealth Fund means public investment is working alongside private capital to build homegrown energy and bring a return for the taxpayer.

UK Energy Secretary Miatta Fahnbulleh said the investment in offshore wind was creating quality jobs and rebuilding industry while delivering clean power to lower bills and reach net zero. " As the world gathers at COP31, Britain is leading from the front as a renewable energy powerhouse," she said.

Industry Perspective

Krebber said the strategic partnership with KKR provides a strong foundation for the joint delivery of the projects and is a vote of confidence in the UK as an attractive place to invest.

He noted that securing the largest ever project financing in UK offshore wind demonstrates lenders' trust in the projects and RWE's ability to deliver them and that the projects will strengthen domestic electricity generation and contribute to a resilient energy system, energy security and affordability.

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.

He said KKR brings long-term capital, global infrastructure expertise and the ability to support complex projects through construction and operation, and that the work with RWE demonstrates how private capital can help turn the UK's energy ambitions into reality.

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