£12bn Vanguard Offshore Wind Projects Move Into Construction

RWE and KKR are moving ahead with the 2.8 GW Vanguard West and Vanguard East offshore wind projects in the UK, with offshore construction scheduled to begin in early 2027 and the first foundation installation planned for the first half of the year.

Located between 50 and 80 kilometres off the Norfolk coast, the two projects will each have an installed capacity of 1.4 GW and represent a combined investment of around £12 billion, including the wind farms and associated transmission infrastructure.

RWE and KKR have completed the formation of a 50:50 joint venture, with KKR acquiring a 50% equity stake in each project. RWE will lead project delivery on behalf of the partnership.

Preparatory works for offshore construction are already well advanced. Vanguard West will be the first to move into foundation installation, followed by Vanguard East, with both wind farms expected to be fully commissioned in 2030.

Onshore cable works and construction of the associated substations are also under way, using coordinated grid infrastructure serving both developments.

“Preparatory works are well advanced, putting us in a strong position to begin offshore construction in early 2027,” said Markus Krebber, CEO of RWE AG.

The projects have also reached financial close, securing £11.1 billion in cash facilities and a further £1.7 billion in ancillary facilities from a consortium of 35 international banks.

According to RWE, this represents the largest non-recourse project financing completed to date for UK offshore wind. The financing package includes a £1 billion commitment from the UK National Wealth Fund, together with credit support from Germany’s Euler Hermes and Denmark’s EIFO.

Vanguard West and Vanguard East secured 20-year Contracts for Difference during the UK’s Allocation Round 7, at a strike price of £91.20/MWh in 2024 prices.

Once operational, the two wind farms are expected to generate enough electricity to supply the equivalent of around three million UK homes.

For the offshore construction sector, the next major milestone will come in the first half of 2027, when foundation installation begins at Vanguard West before moving on to the second 1.4 GW development.