RWE and investment firm KKR have completed their 50:50 joint venture for the Vanguard West and Vanguard East offshore wind projects in the UK and closed a financing package comprising GBP 11.1 billion (EUR 13.3 billion) in cash facilities and GBP 1.7 billion (EUR 2 billion) in ancillary facilities.
A consortium of 35 international banks provided the financing, which RWE says is the largest project financing secured for offshore wind in the UK to date. It includes a GBP 1 billion (EUR 1.2 billion) commitment from the UK's National Wealth Fund, alongside credit cover from Germany's Euler Hermes and Denmark's Export and Investment Fund (EIFO).
The overall investment in the two projects, including their associated transmission infrastructure, is approximately GBP 12 billion (EUR 14.3 billion). The investment is supported by equity commitments from RWE and KKR, alongside the non-recourse project financing.
RWE and KKR announced that the US investment firm would acquire a 50 per cent stake in each of the two projects in December 2025, following the award of 20-year contracts for difference (CfD) to both wind farms in the UK's seventh allocation round in January 2026, at a strike price of GBP 91.20 per MWh (approximately EUR 109 per MWh) in 2024 prices.
The companies signed an agreement in January this year, with the transaction and project financing then targeted for completion in summer 2026.
The equity transaction has now closed, formally establishing the 50:50 joint venture. The two companies will jointly develop, construct and operate the wind farms, with RWE leading project delivery on behalf of the partnership.
Vanguard West and Vanguard East, located 50 to 80 kilometres off the coast of Norfolk in East Anglia, will each have an installed capacity of approximately 1.4 GW and are expected to generate enough electricity to supply the equivalent of around three million UK homes.
Earlier this year, RWE placed firm orders with Vestas for 92 of its V236-15 MW turbines for each project. Haizea Wind Group has already started producing the monopile foundations for Vanguard West, with Lamprell to manufacture 184 transition pieces for the two wind farms.
Preparatory work on the projects is well advanced, with offshore construction scheduled to start in early 2027. The first foundation installation at Vanguard West is planned for the first half of 2027, followed by Vanguard East. Both wind farms are now expected to be fully commissioned in 2030.