UK wind farms secure £12 billion RWE-KKR investment

The UK government welcomed a £12 billion ($16 billion) investment by German energy group RWE and US investment fund KKR in two offshore wind farms off Norfolk on Wednesday, days before Prime Minister Andy Burnham travels to the COP31 climate summit in Turkey.

RWE said the Vanguard West and Vanguard East projects will have a combined capacity of 2.8 gigawatts and are set to deliver power by 2030. The government said they will be able to generate enough electricity for three million households and support more than 2,400 jobs during construction and operation.

KKR has acquired a 50% stake in each project after partnering with RWE in a joint venture. RWE said the financing involves 35 international banks and includes a £1 billion commitment from the National Wealth Fund, a British public body.

The projects were among those awarded in a UK government auction in January, which secured a record amount of offshore wind power capacity. The government says the selected projects will deliver 8.4 gigawatts of electricity, enough to power 12 million homes.

Britain has set a target to consume zero-carbon electricity by 2030 and to reach net zero greenhouse gas emissions by 2050. Burnham's government is promoting renewable energy while defending last month's approval of the Jackdaw gas field in the North Sea. It has not yet decided whether to approve the Rosebank field west of the Shetland Islands.