RWE and KKR Team Up on $16 Billion UK Offshore Wind Projects

Renewable energy company RWE and private equity firm KKR will jointly develop offshore wind projects in the United Kingdom, with total investment of about $16 billion. According to Sina Finance, the companies said Wednesday that the Vanguard West and Vanguard East projects in the North Sea have a combined capacity of about 2.8 gigawatts and have both reached financial close. The projects have a total investment of £12 billion, or about $16 billion, supported by equity commitments from RWE and KKR and financing from an international consortium of lenders. KKR has acquired a 50% stake in each project, forming joint ventures in which the companies each hold 50%; the partners announced the ventures in January this year. They will jointly develop, build and operate the wind farms, with RWE leading project delivery. RWE CEO Markus Krebber said preparations had made the projects well positioned to begin offshore construction in early 2027. KKR Europe Infrastructure Co-Head Vincent Policard said the United Kingdom had significant opportunities to support long-term economic growth and strengthen energy security through critical infrastructure, adding that delivering projects at this scale requires substantial private investment. The companies said 35 banks are financing the projects, making the transaction the largest project financing deal in the history of the UK offshore wind sector.