Photo by Paul Einerhand

RWE and investment firm KKR have reached financial close on a £13.1 billion debt package to build the Norfolk Vanguard West and East offshore wind farms off the Norfolk coast. The deal, agreed with a consortium of banks and the National Wealth Fund (NWF), covers both 1.55GW projects, with the NWF committing around £1 billion, according to Energy Voice.

The two fixed-bottom projects secured 20-year Contracts for Difference in Allocation Round 7 in January at a strike price of £91.20 per megawatt hour in 2024 prices. Together they total 3.1GW and, once operational, RWE says they will generate enough electricity to power around three million UK homes. On the same day as the auction results, RWE agreed to sell KKR a 50% stake in each project, with the two partners jointly developing, building and operating the wind farms.

From contract to construction

Financial close marks the point at which the projects move from development into delivery. RWE had originally targeted summer 2026 for financial close and a final investment decision on both projects, so the deal has landed a few months later than planned.

The supply chain is already in place for turbines. Vestas will supply 92 of its V236-15MW turbines to Vanguard West, the first major manufacturing deal agreed after AR7, and a further 92 to Vanguard East. Commissioning is expected in 2029 for Vanguard West and 2030 for Vanguard East. The projects were originally developed by Vattenfall before being acquired by RWE.

Public finance in the mix

The NWF’s participation is notable. The government-owned investor was set up to mobilise private capital for clean energy and infrastructure, and its role here shows public money being used to de-risk lending to the UK’s largest AR7 projects. The deal arrives as the sector watches closely for signals on the next auction round and on grid capacity.