RWE stock: KKR completes £12bn offshore wind venture

RWE and KKR completed their 50:50 joint venture for two British North Sea offshore wind projects on November 11, according to a KKR announcement. The companies also reached financial close for Vanguard West and Vanguard East, giving RWE a new jointly owned platform for large-scale UK renewable generation.

What changed for the projects

KKR acquired a 50% equity stake in each project. RWE will lead development, construction and operations on behalf of the joint venture, while both partners are committing equity.

The two wind farms are planned for waters 50 to 80 kilometres off the Norfolk coast in East Anglia. Each is designed for 1.4 gigawatts of installed capacity, with combined output capable of supplying the equivalent of around three million UK homes once operational.

Financing supports construction

The investment covers the wind farms and associated transmission infrastructure. The non-recourse financing comprises 11.1 billion British pounds in cash facilities and 1.7 billion British pounds in ancillary facilities from a consortium of 35 international banks. The package includes a 1 billion British pound commitment from the UK's National Wealth Fund.

RWE's chief executive Markus Krebber said the financing and partnership provide a foundation for delivery and reflect lender confidence in the projects. The company said preparatory work, including onshore cable works and substation construction, is already well advanced.

Construction milestones ahead

Offshore construction is scheduled to start in early 2027. The first foundation installation for Vanguard West is planned for the first half of 2027, followed by Vanguard East, while full commissioning of both projects is expected in 2030. Each project has a 20-year inflation-indexed Contract for Difference awarded in the UK's Allocation Round 7.

RWE stock traded at 59.56 euros on Lang & Schwarz at 17:44 CET on Friday, November 13, 0.03 percent below the Xetra close of Friday, November 13.

Investors can follow broader European trading in the current market reports.

More company developments are available in more news and analyses on RWE stock.