£11.1 billion financing for two UK offshore wind projects developed by RWE and KKR
Key Facts
The financing package for two offshore wind projects developed by RWE and KKR in the UK includes £11.1 billion in cash loans, Reuters reported, citing an announcement on November 11, 2026. The loans are supplemented by £1.7 billion in additional credit lines and a £1 billion commitment from the UK National Wealth Fund. RWE Chief Executive Markus Krebber described the financing as the largest to date for an offshore wind project in the UK. He said lenders "are showing confidence in the projects and our ability to deliver them." The financing moves the two projects into the execution phase, with offshore construction targeted to begin in early 2027.
The Vanguard East and Vanguard West projects have secured 20-year contracts for difference at a strike price of £91.20 per megawatt-hour, in 2024 prices indexed to inflation. The contracts provide a long-term pricing framework for the electricity the projects will produce, according to an RWE announcement in January 2026. The company said the two wind farms could supply electricity to about 3 million British homes once operational. The projects are among five RWE offshore wind projects awarded contracts for difference in the seventh allocation round. The five projects have a combined capacity of 6.9 gigawatts, according to the company.
The plan calls for the first foundations for Vanguard West to be installed in the first half of 2027, with offshore construction set to begin early that year, according to the schedule reported by Reuters. The Vanguard East project is due to follow, with both wind farms targeting full operation by 2030. RWE announced an agreement with Vestas in February to supply 92 turbines for Vanguard West. The supply announcement targeted a final investment decision in summer 2026, with the project expected to begin operating in 2029. In September 2026, the UK Department for Energy Security and Net Zero waived a requirement to mitigate the project's impact on air defense radar; the site is 47 kilometers off the Norfolk coast and has an authorized maximum capacity of 1,800 megawatts.
UK Prime Minister Andy Burnham said the investment reflects confidence in Britain's ability to deliver projects of this kind. He added that the turbines would generate electricity "that remains under our control, regardless of what happens on the other side of the world." RWE shares rose as much as 3.5% when the partnership was announced in January 2026, reaching their highest level in about 15 years, Reuters reported. That move relates to the January announcement, while the currently announced schedule targets the start of offshore construction in 2027. The next scheduled milestone is full operation of both projects by 2030.