RWE secures 13.1 billion pound debt for Vanguard offshore wind

RWE and private equity firm KKR have reached financial close on a 13.1 billion pound debt package to construct the Vanguard West and East offshore wind farms. The agreement, facilitated by a consortium of banks and the National Wealth Fund, covers two fixed-bottom projects located in Norfolk. The National Wealth Fund has committed approximately one billion pounds to the initiative, supporting the development of the 1.55 gigawatt capacity sites.

The projects secured a strike price of 91.20 pounds per megawatt hour in 2024 prices through the UK Contracts for Difference Allocation Round 7. Following the announcement of this record allocation round in January, RWE agreed to source turbines for the Vanguard West project from Vestas. This was the first major manufacturing deal concluded after the allocation results were published. Vestas subsequently secured a contract to supply turbines for the Vanguard East sites in the following weeks. Both projects will be built using 184 Vestas V236-15.0 MW turbines.

The development has not been without complications, as RWE cancelled its order for monopiles from the SeAH factory at the Teesworks site near Redcar for the Vanguard West wind farm in April. The company retained its order for the Vanguard East site, which was scheduled for later delivery. SeAH also mutually agreed to discontinue monopile production for the Hornsea 3 offshore wind farm with partner Ørsted after it became apparent the manufacturer could not fulfil the order. RWE has also secured Contracts for Difference for the Dogger Bank South offshore wind farms, a joint venture with Emirati state-owned renewables developer Masdar.