RWE, one of the world’s leading renewable energy companies, has secured Contracts for Difference (CfDs) for five major UK offshore wind projects under the UK Government’s Allocation Round 7 (AR7), marking a significant milestone for the country’s renewable energy expansion. The awarded projects – Norfolk Vanguard East and West, Dogger Bank South East and West, and Awel y Môr – represent a combined capacity of 6.9 gigawatts (GW) at a strike price of £91.20 per megawatt hour (MWh), in 2024 prices, inflation-indexed, according to the UK Department for Energy Security and Net Zero (DESNZ).
Strategic Partnerships Drive Offshore Wind Development
RWE has entered a long-term partnership with global investment firm KKR to jointly develop the Norfolk Vanguard East and West projects. KKR will acquire a 50 percent equity stake in both projects, with the partners sharing responsibility for development, construction, and operation. The partnership is expected to close in summer 2026, subject to customary approvals.
For the Dogger Bank South projects, RWE is collaborating with Masdar, holding a 51 percent stake, while Awel y Môr is a joint venture with Stadtwerke München (30 percent) and Siemens (10 percent). These strategic alliances demonstrate the value of strong partnerships in delivering large-scale, complex offshore wind projects.
Project Details and Timelines
Norfolk Vanguard East and West: Located 50-80 km off the Norfolk coast, the projects will generate 3.1 GW, enough to power 3 million UK homes. Norfolk Vanguard West is expected to be commissioned in 2029, followed by Norfolk Vanguard East in 2030. RWE has initiated non-recourse project finance for the developments.
Dogger Bank South (DBS): Situated over 100 km off the northeast coast of England in the North Sea, DBS comprises DBS East and DBS West, with a combined capacity of 3 GW, capable of powering around 3 million UK homes annually. DBS West is expected to commission in 2031 and DBS East in 2032.
Awel y Môr: An extension of the existing Gwynt y Môr Offshore Wind Farm, Awel y Môr has a capacity of 0.8 GW, sufficient for approximately 870,000 UK homes. The project is located 10.5 km off the north Wales coast and is expected to commission in 2031.
RWE’s Leadership in Offshore Wind
RWE currently operates 19 offshore wind farms across five countries with a total installed capacity of 6.2 GW (RWE’s share: 3.3 GW). Additionally, RWE has four offshore wind projects under construction, which will add 4.8 GW (RWE’s share: 3.1 GW) to its global capacity.
Markus Krebber, CEO of RWE AG, stated: “By combining KKR’s investment expertise with RWE’s offshore wind know-how, we are well positioned to deliver these major projects. Partnerships like those with Masdar, Stadtwerke München, and Siemens highlight the importance of collaboration in advancing renewable energy.”
UK Offshore Wind Outlook
The success of AR7 reinforces the UK’s position as a global leader in offshore wind energy. Once operational, these projects will significantly contribute to the UK’s renewable energy targets, reduce carbon emissions, and provide sustainable electricity for millions of households.
With RWE’s extensive experience and strategic partnerships, the company is set to play a crucial role in the growth of UK offshore wind capacity, supporting the nation’s transition to a low-carbon energy future.
BABURAJAN KIZHAKEDATH
