RWE and KKR have completed their 50:50 joint venture for Vanguard West and Vanguard East and reached financial close on both UK projects. KKR acquired a 50% equity stake in each wind farm, formally establishing the partnership, according to RWE’s announcement.
The financing comprises £11.1 billion in cash facilities and £1.7 billion in ancillary facilities from a consortium of 35 international banks. RWE described it as the largest non-recourse project financing secured for UK offshore wind. The package includes a £1 billion commitment from the UK’s National Wealth Fund and credit cover from Germany’s Euler Hermes and Denmark’s EIFO. The overall investment, including transmission infrastructure, is around £12 billion.
Each wind farm will have an installed capacity of 1.4 GW. Located 50 to 80 kilometres off Norfolk, the projects are expected to be fully commissioned in 2030 and to supply electricity equivalent to around three million UK homes. Each secured a 20-year inflation-indexed contract for difference in the UK’s seventh allocation round, at £91.20 per MWh in 2024 prices.
Offshore construction is scheduled to start in early 2027. The first foundation installation at Vanguard West is planned for the first half of that year, followed by Vanguard East. RWE has ordered 92 V236-15 MW turbines for each project from Vestas. Haizea Wind Group has started monopile production for Vanguard West, while Lamprell is contracted to supply 92 transition pieces for each farm. HMT News reported on the Vestas order for Vanguard West.
