RWE and KKR announce long-term partnership for British offshore wind projects

RWE announced on Wednesday that it had agreed to sell a?stake in its Norfolk Vanguard West & East offshore wind project to investor KKR. The German utility was one of the winning bidders in a landmark British renewables auction. The deal is expected to close this summer. No financial details have been disclosed. However, RWE has stated that the two parties will assess the possibility of extending their collaboration on additional projects.

RWE and KKR are collaborating to 'develop, build, and operate the wind farm.' This is a farming down model that allows both financiers and project developers to share the cost of large offshore projects.

RWE shares, Germany's largest utility,?rose 3% on the news. They were the top gainers in Frankfurt's benchmark DAX Index among blue-chips.

RWE's Norfolk Vanguard East & West?projects located 50-80miles off the British Coast were awarded contracts covering?3.1gigawatts. Once operational, they will be able to?power around 3million homes.

This deal is a follow-up to RWE's

Last year, the Norwegian sovereign wealth fund purchased a 49% share in two offshore wind farm in Denmark and Germany for 1.4 billion euro.

(source: Reuters)