KKR and RWE Forge Strategic Alliance for UK Offshore Wind Development

KKR and RWE Forge Strategic Alliance for Major UK Offshore Wind Expansion

KKR, a prominent global investment firm, and RWE, a titan in renewable energy, have joined forces in a significant partnership aimed at developing two pivotal offshore wind projects in the United Kingdom: Norfolk Vanguard East and Norfolk Vanguard West. This collaboration is set to introduce approximately 3 gigawatts (GW) of new offshore wind capacity, a crucial step toward bolstering the UK’s national decarbonization objectives.

The joint venture, structured as a 50:50 partnership between KKR and RWE, will spearhead the construction and operation of these two ambitious wind farms. The undertaking requires a substantial investment exceeding $15 billion in development and capital expenditures. The projects are slated for completion by 2029 and 2030, respectively, and are projected to generate enough clean energy to power over 3 million British homes. This initiative directly supports the UK government’s goal to double its offshore wind capacity within the next decade.

RWE brings a formidable legacy to the table, boasting 125 years of experience in electricity generation and a robust portfolio in renewables. As Germany’s and the UK’s largest power producers, RWE holds a significant position in the global offshore wind market, with 19 operational wind farms across Europe.

Offshore wind is a cornerstone of the UK’s energy infrastructure, currently supplying around 20% of the nation’s electricity. The government’s ambitious target is to reach up to 50GW of offshore wind capacity by 2030. The new Norfolk Vanguard projects will be strategically located 50 to 80 kilometers off the East Anglia coast in the North Sea, comprising 184 turbines, offshore substations, and direct connections to the National Grid.

Vincent Policard, Co-Head of European Infrastructure at KKR, expressed enthusiasm about the alliance: “We are delighted to be forming this strategic partnership with RWE, a proven leader in offshore wind with an exceptional track record of developing high-quality projects. This investment 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. By leveraging our complementary strengths – RWE’s world-class development expertise and KKR’s expertise in investing and owning large scale construction and renewable projects – we are helping deliver a significant addition to the UK’s future offshore wind capacity and support the UK in its decarbonisation journey.”

Sven Utermöhlen, CEO of RWE Offshore Wind, echoed this sentiment: “We are pleased with the successful outcome of AR7 and are delighted to join forces with KKR as our strategic partner in the Norfolk Vanguard East and Norfolk Vanguard West offshore wind projects. By combining KKR’s investment know-how in large-scale, complex infrastructure projects with RWE’s extensive offshore wind expertise, we are well positioned to jointly realize these major projects.”

Shreya Malik, Managing Director in KKR’s European Infrastructure team, highlighted KKR’s extensive experience: “KKR has built one of the largest renewable energy portfolios globally with a pipeline of over 50GW across its portfolio. We bring a full operational and financing toolkit that is designed to support the delivery of large-scale renewable projects alongside strategic partners like RWE. Our partnership model combines KKR’s know-how in executing on large scale complex infrastructure projects with leading industrial capabilities to accelerate the build-out of critical clean-energy infrastructure. RWE is one of the most respected offshore wind developers, and we are proud to partner with them on this milestone project.”

KKR has demonstrated a strong commitment to the energy transition, investing over $31 billion in renewable and transition-related assets globally since 2011 through its Infrastructure platform. The firm’s portfolio includes over 10 renewable energy developers, with recent investments such as Encavis, a German renewable energy platform, and significant stakes in European renewables developer Greenvolt and US solar and storage developer Avantus.

Both Norfolk Vanguard projects have secured allocation under the UK’s Contract for Difference scheme in Allocation Round 7. The transaction’s completion is contingent upon customary closing conditions. KKR is financing its contribution through capital accounts advised by the firm.