Two major offshore wind projects off the Norfolk coast have reached financial close, securing around £12 billion in investment, backed by what developer RWE describes as the largest non-recourse project financing yet arranged for UK offshore wind. The announcement comes as Prime Minister Andy Burnham prepares to attend the COP31 climate summit in Türkiye.
German energy company RWE and US investment firm KKR have completed a 50:50 joint venture to develop, construct and operate the Vanguard West and Vanguard East wind farms, which will have a combined generating capacity of 2.8 gigawatts (GW).1
Located between 50 and 80 km off the Norfolk coast, the two projects will each have a capacity of approximately 1.4 GW. Once fully operational, they are expected to generate enough electricity to supply the equivalent of around three million UK homes.
The £12 billion investment covers the wind farms and their associated transmission infrastructure, supported by equity commitments from RWE and KKR and financing from a consortium of international lenders.
The financing package comprises £11.1 billion in cash facilities and £1.7 billion in ancillary facilities from 35 international banks. The UK’s publicly owned National Wealth Fund is providing £1 billion in financing, its largest offshore wind commitment to date. The arrangements also include credit cover from Germany’s Euler Hermes and Denmark’s Export and Investment Fund (EIFO).
RWE said the arrangement represents the largest non-recourse project financing secured for UK offshore wind. Under this structure, lenders rely principally on the projects and their revenues for repayment, rather than the wider assets of the companies developing them.
The Vanguard projects were awarded 20-year, inflation-indexed Contracts for Difference (CfDs) in January 2026, with a strike price of £91.20 per megawatt-hour in 2024 prices.
Preparatory works are already well advanced, including onshore cabling and substations. Offshore construction is scheduled to begin in early 2027, with the first foundations for Vanguard West expected to be installed during the first half of that year. Both wind farms are scheduled for full commissioning in 2030.
The projects will use Vestas V236-15 MW wind turbines, with 92 ordered for each development. The government estimates that more than 2,400 jobs will be supported during construction and operation.
RWE chief executive Markus Krebber said the partnership with KKR provided a strong foundation for delivering the projects and demonstrated investor confidence in the UK offshore wind sector.
“Securing the largest ever project financing in UK offshore wind also demonstrates our lenders’ trust in these projects and our ability to deliver them.”
Prime Minister Andy Burnham welcomed the investment ahead of his attendance at the COP31 summit in Antalya, where he is scheduled to address world leaders on 12 November.
“This major investment in UK renewables is a vote of confidence for building in Britain,” he said.
“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.”
The investment was also welcomed by the Confederation of British Industry (CBI).
Rain Newton-Smith, the organisation’s chief executive, said: “Investment on this scale can attract further private capital, create skilled jobs and support growth in communities across the country.”
She added that expanding domestic clean electricity generation could strengthen energy security and reduce exposure to volatile international energy markets.
Scottish offshore wind development advances
In a separate announcement coinciding with COP31, Scottish-headquartered SSE confirmed the selection of Siemens Energy as preferred supplier for its proposed 1.4 GW Berwick Bank B offshore wind farm, approximately 38 km off the Scottish Borders coast in the outer Firth of Forth.2
The development is expected to support 2,677 skilled jobs across Scotland and northern England, including 130 newly announced roles in Glasgow and Montrose.
Berwick Bank B forms part of the wider proposed 4.3 GW Berwick Bank development, which SSE says could eventually generate electricity equivalent to more than 6% of current UK demand.
Unlike the Vanguard projects, Berwick Bank B has not yet reached a final investment decision, which is expected in late 2027.
The UK government is seeking to accelerate renewable energy deployment and attract private investment into electricity infrastructure. The announcement follows the establishment of a separate £2 billion Energy Wealth Fund, linked to future North Sea revenues and intended to support renewable and low-carbon energy projects.
Notes
[1] “RWE and KKR join forces to deliver 2.8 gigawatts of new offshore wind capacity in the UK – an investment of around £12 billion”, RWE, 11 November.
[2] “More than 2,600 UK jobs backed by SSE’s Berwick Bank B”, SSE, 11 November.
