RWE and KKR Join Forces to Deliver 2.8 Gigawatts of New Offshore Wind Capacity in the UK – An Investment of Around £12 Billion

The projects have secured 20-year inflation-indexed electricity contracts and financing from 35 international banks.

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• Vanguard West and Vanguard East offshore wind farms to be fully commissioned in 2030 and capable of powering around three million UK homes
• Onshore infrastructure works already well advanced, with offshore construction set to start in early 2027
• Equity close completed: KKR has acquired a 50% equity stake in each of Vanguard West and Vanguard East, formally establishing the 50:50 joint venture with RWE
• Largest ever non-recourse project financing for UK offshore wind secured

ESSEN, Germany & LONDON--(BUSINESS WIRE)-- RWE, one of the world’s leading renewable energy companies, and KKR, a leading global investment firm, are jointly delivering the Vanguard West and Vanguard East offshore wind projects in the British North Sea. Together, the projects represent one of the UK’s largest offshore wind developments, with a combined generation capacity of around 2.8 gigawatts.

The projects represent a total investment of around £12 billion, including the construction of the wind farms and their associated transmission infrastructure. The investment is supported by equity commitments from both RWE and KKR, alongside non-recourse project financing secured from a consortium of international lenders. Financial close has been reached for both projects.

Vanguard West and Vanguard East will add significant new generation capacity to the UK’s electricity system, making an important contribution to domestic energy security, while also delivering electricity at an affordable price for consumers. Once operational, they will have the capacity to supply the equivalent of around three million UK homes.

UK Prime Minister Andy Burnham said: “This major investment in UK renewables is a vote of confidence for building in Britain. And it is great news for billpayers because every turbine we put up is power under British control, not at the mercy of events on the other side of the world. With coastal communities from Scotland to East Anglia powering Britain’s future, the places that host this energy benefit from the jobs and opportunities that it brings. Our National Wealth Fund means that public investment is working alongside private capital to build homegrown energy and bring a return for the taxpayer. Because for me, a clean energy future is one that brings down bills.”

UK Energy Secretary Miatta Fahnbulleh said: “This is another vote of confidence in British homegrown, clean energy. Investment in offshore wind and clean power is creating quality jobs and rebuilding industry, while delivering the clean power we need to lower bills and reach net zero. As the world gathers at COP31, Britain is leading from the front as a renewable energy powerhouse, turning the fight against climate change into a brighter future for British companies, industrial communities, and future generations.”

Markus Krebber, CEO of RWE AG: “Our strategic partnership with KKR provides a strong foundation for the joint delivery of Vanguard West and Vanguard East, and is a vote of confidence in the UK as an attractive place to invest. Securing the largest ever project financing in UK offshore wind also demonstrates our lenders’ trust in these projects and our ability to deliver them. With a combined capacity of 2.8 gigawatts, the projects will strengthen domestic electricity generation and make an important contribution to a resilient energy system, energy security and affordability. Preparatory works are well advanced, putting us in a strong position to begin offshore construction in early 2027.”

RWE and KKR have also completed the joint venture transaction announced in January 2026. KKR has acquired a 50% equity stake in each project, formally establishing the 50:50 joint venture. Both partners are committing equity to the projects, combining RWE’s extensive experience in developing and operating offshore wind farms with KKR’s long-term capital and global infrastructure investment expertise. KKR is funding the investment through capital accounts advised by KKR. The partners will bring together their expertise to jointly develop, construct and operate both wind farms, with RWE leading project delivery on behalf of the joint venture.

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. Delivering at this scale requires substantial private investment, and KKR brings long-term capital, global infrastructure expertise and the ability to support complex projects through construction and operation. Our work with RWE demonstrates how private capital can help turn the UK’s energy ambitions into reality, with these projects capable of powering around three million UK homes.”

Project financing from a large consortium of international lenders

Financial close has been reached for both projects, securing a non-recourse project financing comprising £11.1 billion in cash facilities plus £1.7 billion in ancillary facilities from a consortium of 35 international banks – the largest ever project financing in UK offshore wind. The financing includes a £1 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 the UK’s National Wealth Fund and Euler Hermes. The National Wealth Fund, Euler Hermes and EIFO have played an important role in helping the projects meet their financing requirements. RWE launched the financing process on behalf of the joint venture and joined forces with the KKR Capital Markets team beginning of this year to execute the financing.

The financing attracted strong demand from a broad syndicate of lenders, with commitments successfully covering the targeted financing amount. Together with equity commitments from RWE and KKR, the financing package demonstrates the important role of long-term private capital and international financing partnerships in delivering major energy infrastructure projects in the UK.

The Vanguard projects secured Contracts for Difference (CfDs) in the UK’s Allocation Round 7. In January 2026, each project was awarded a 20-year inflation-indexed CfD at a strike price of £91.20 per megawatt hour in 2024 prices.

Major new wind power for the United Kingdom

Vanguard West and Vanguard East will be located between 50 and 80 kilometres off the Norfolk coast in East Anglia. Each project will have an installed capacity of 1.4 GW, giving a combined capacity of 2.8 GW.

Preparatory works are already well advanced for offshore construction, which is set to begin in early 2027. The first foundation installation for Vanguard West is planned for the first half of 2027, followed by Vanguard East. Full commissioning of both projects is expected in 2030. Onshore cable works and construction of the substations are well advanced. The projects will use coordinated grid infrastructure designed to reduce environmental and community impacts.

KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

RWE

RWE is shaping the energy world of tomorrow. To this end, the company is investing billions of euros in offshore and onshore wind, solar energy, battery storage, flexible generation assets and, through its shareholding in Amprion, in the expansion of Germany’s transmission grid. The portfolio is complemented by its global energy trading business. RWE is already one of the leading companies in the field of renewable energy. Around 20,000 employees work for the company worldwide. With its integrated portfolio and broad project pipeline, RWE is ideally positioned to meet the growing global demand for electricity driven by electrification and artificial intelligence. At the same time, the company is making an important contribution to ensuring a secure, affordable and climate-friendly energy supply. RWE is decarbonising its business in line with the 1.5-degree reduction pathway, will phase out coal by 2030 and aims to achieve net zero by 2040 – fully in line with the company’s purpose: Our energy for a sustainable life.

Forward-looking statements

This press release contains forward-looking statements. These statements reflect the current views, expectations and assumptions of management, and are based on information currently available to management. Forward-looking statements do not guarantee the occurrence of future results and developments and are subject to known and unknown risks and uncertainties. Actual future results and developments may deviate materially from the expectations and assumptions expressed in this document due to various factors. These factors primarily include changes in the general economic and competitive environment. Furthermore, developments on financial markets and changes in currency exchange rates as well as changes in national and international laws, in particular in respect of fiscal regulation, and other factors influence the company’s future results and developments. Neither the company nor any of its affiliates undertakes to update the statements contained in this press release.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20261110126762/en/

For press enquiries:

KKR
Media@kkr.com

RWE AG
Vera Bücker
Head of Media Relations & Internal Communications International & Corporate
M +49(0)162 251 73 29
E. vera.buecker@rwe.com

RWE Offshore Wind
Mark Fleming
Senior Manager Media Relations M +44 (0)78 25 60 80 96
E mark.fleming@rwe.com

Source: KKR

Key Terms

non-recourse project financing financial

A non-recourse project financing is a loan arranged so lenders can be repaid only from the specific project's cash flows and physical assets, not from the borrowing company’s other assets or from personal guarantees by the owners. For investors this matters because it isolates losses to that project: creditors bear more risk and usually charge higher returns, so project revenue stability and asset quality become the main drivers of value—like a mortgage that can be satisfied only by selling the house.

contracts for difference (c f d s) financial

Contracts for difference (CFDs) are financial derivatives in which two parties agree to exchange the difference in value of an underlying asset between the contract's opening and closing times; the seller pays the buyer if the asset's price rises, and the buyer pays the seller if it falls. CFDs do not convey ownership of the underlying asset but provide exposure to its price movements, typically use margin (leverage) to magnify exposure, are settled in cash rather than by physical delivery, and create counterparty risk because the contract is between the trader and the CFD provider; regulatory status and whether CFDs trade OTC or on an exchange vary by jurisdiction.

strike price financial

The strike price is the fixed price at which an option gives its holder the right to buy or sell an underlying stock. Think of it like a coupon that lets you transact at a pre-agreed price regardless of the market; for investors it determines whether an option will be profitable, influences potential gains or losses, and is a key factor in the option’s market value and risk profile.

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ancillary facilities financial

Facilities, structures, systems or equipment that support a project's or company's primary operations but are not the main production or service unit; examples include access roads, utility hookups (power, water, sewer), storage areas, maintenance workshops, administrative buildings, temporary construction camps, and site drainage or waste-handling works. Ancillary facilities enable the main facility to operate and may be permanent or temporary, subject to separate permits or regulatory requirements, but do not themselves perform the core productive function described by the primary asset.