RWE and global investment firm KKR have reached financial close on the 2.8 GW Vanguard West and Vanguard East offshore wind projects in the UK North Sea, securing financing for developments representing a combined investment of approximately $16.1 billion (£12 billion).
The companies have also completed their joint venture transaction, with KKR acquiring a 50% equity stake in each project, establishing an equal partnership with RWE, which will lead project delivery.
The developments have secured $14.9 billion (£11.1 billion) in cash facilities and $2.28 billion (£1.7 billion) in ancillary facilities through non-recourse project financing from a consortium of 35 international banks, described by the companies as the largest financing of its kind for UK offshore wind.
The package includes a $1.34 billion (£1 billion) commitment from the UK's National Wealth Fund and credit cover from Germany's Euler Hermes and Denmark's EIFO.
Vanguard West and Vanguard East will be located between 50 and 80 kilometres off the Norfolk coast, with each wind farm providing 1.4 GW of installed capacity.
Offshore construction is scheduled to begin in early 2027, with the first foundation installation at Vanguard West planned for the first half of the year, followed by Vanguard East. Both projects are expected to be fully commissioned in 2030.
Onshore cable installation and substation construction are already well advanced, with the projects expected to generate enough electricity to power the equivalent of approximately three million UK homes once operational.
The wind farms secured 20-year inflation-indexed Contracts for Difference (CfDs) in January 2026 under the UK's Allocation Round 7, each at a strike price of £91.20 per megawatt-hour in 2024 prices.
The investment covers construction of the wind farms and their associated transmission infrastructure, supported by equity commitments from both partners and the project financing package.