The projects, Vanguard West and Vanguard East, will have a combined generation capacity of approximately 2.8 gigawatts and are expected to supply electricity equivalent to the needs of around three million UK homes once fully operational.
The investment includes the construction of the wind farms and associated transmission infrastructure. KKR has acquired a 50% equity stake in each project, establishing an equal partnership with RWE to develop, construct and operate the facilities.
Financial close has been reached for both developments, supported by a non-recourse financing package involving 35 international banks. The arrangement includes £11.1 billion in cash facilities and £1.7 billion in ancillary facilities, making it the largest project financing secured for UK offshore wind, according to RWE.
The UK’s National Wealth Fund has committed £1 billion to the financing, while Germany’s Euler Hermes and Denmark’s Export and Investment Fund of Denmark are providing credit support. The participation of public financial institutions alongside commercial lenders illustrates the role of blended financing in supporting capital-intensive energy projects.
The two wind farms will be located between 50 and 80 kilometres off the Norfolk coast in East Anglia. Each will have an installed capacity of approximately 1.4 gigawatts.
Preparatory work on the onshore infrastructure is already well advanced, with offshore construction scheduled to begin in early 2027. The first foundation installation for Vanguard West is planned for the first half of that year, while full commissioning of both projects is expected in 2030.
The projects have also secured 20-year inflation-indexed Contracts for Difference under the UK’s Allocation Round 7, providing a long-term revenue framework for electricity generation. The agreed strike price is £91.20 per megawatt-hour in 2024 prices.
The investment comes as the UK seeks to expand domestic electricity generation, improve energy security and reduce exposure to volatile international fuel markets. Offshore wind is expected to remain an important component of the country’s electricity transition, although delivery depends on construction schedules, grid connections and supply-chain capacity.
For RWE and KKR, the partnership demonstrates the scale of private capital required to develop large renewable energy assets. Its successful delivery will depend on effective project management, financing discipline and the ability to bring the infrastructure into operation as planned.
