RWE and KKR form 50:50 joint venture for $15bn offshore wind

RWE has agreed to sell a 50% equity stake in its Norfolk Vanguard East and Norfolk Vanguard West offshore wind projects to global investor KKR, forming a 50:50 joint venture that will develop, construct and operate the two farms together. The partnership covers projects with roughly 3–3.1 gigawatts of generation capacity located about 50–80 miles off the British coast and is expected to underpin roughly $15 billion in combined development and capital spending to bring the assets into operation.

KKR said the two wind farms “required more than $15 billion in total development and capital spending” to be operational by 2029 and 2030 respectively. RWE will retain operational control under a farm-down structure while sharing development and capital costs with KKR. The transaction remains subject to customary approvals and is targeted to close in summer 2026, coinciding with RWE’s targeted final investment decision and the launch of non-recourse project finance debt for the pair.

Once commissioned, the two phases are expected to generate enough power for around three million UK homes. RWE and KKR expect to bring Norfolk Vanguard West online in 2029 and Norfolk Vanguard East in 2030. The scale of required capital implies roughly $4.8–5.0 billion per gigawatt of installed capacity, underscoring the heavy financing needs of next-generation offshore projects.

The deal follows RWE’s success in the UK’s Allocation Round 7, where the company secured Contracts for Difference at a strike price of £91.20 per megawatt hour for several offshore projects, including the Norfolk Vanguard pair, part of a 6.9 GW haul awarded in the round. Markus Krebber, CEO of RWE AG, said the company was “delighted” with the AR7 outcome and “excited to join forces with KKR as our strategic partner” to realise the Norfolk Vanguard projects. Vincent Policard, co-head of European infrastructure at KKR, described the investment as one that “underscores our conviction in the long-term importance of UK renewables and the central role offshore wind will play in advancing the country’s energy transition.”

The market greeted the announcement positively; RWE shares rose as much as 3.5% to their highest level since February 2011. KKR has engaged Kirkland & Ellis as legal adviser. RWE also signalled it will consider extending the partnership to additional projects, reflecting a wider industry trend of farm-downs that trade developer equity for capital and risk sharing. Last year RWE sold a 49% stake in two offshore farms in Denmark and Germany to Norway’s sovereign wealth fund for €1.4 billion, a precedent that helped de-risk and finance its pipeline.

For policymakers and investors, the transaction highlights two converging dynamics: the escalating scale and capital intensity of offshore wind, and the importance of long-term revenue frameworks like CfDs to enable project finance. The Norfolk Vanguard JV illustrates how developers are leveraging institutional capital to bridge a financing gap that banks and bond markets alone may struggle to fill, especially as projects require multibillion-dollar debt packages and extended construction timetables.

Some people familiar with the matter placed the implied value of the 50% stake at about $1.8 billion, though RWE and KKR have not disclosed definitive financial terms. With closing, project finance and FID all targeted for summer 2026, the partnership will be a key test of whether large-scale offshore projects can be delivered on schedule amid high global competition for capital and evolving UK energy policy.