Norges Bank Acquires 49% Stake In RWE Offshore Farms

Norway's sovereign wealth fund, Norges Bank Investment Management (NBIM), has made a major clean energy investment move by purchasing a 49% stake in two under-construction offshore wind farms in Germany and Denmark. The €1.4 billion ($1.5 billion) deal involves NBIM joining hands with Germany's top utility, RWE, in Nordseecluster and Thor offshore wind farms.

The total capacity of these wind farms will be 2.64 gigawatts (GW), sufficient to supply power to 2.6 million homes in Germany and Denmark. Though NBIM will have a significant stake in the projects, RWE will have complete control over their execution and operation to maintain continuity.

The Nordseecluster, approximately 50 kilometers north of Juist Island in the German North Sea, will be developed in two stages. The first stage, Nordseecluster A, will supply 660 megawatts (MW) and should be commissioned in full by 2027. The second stage, Nordseecluster B, will supply a further 900 MW and will be operational by 2029. When completed, the Nordseecluster will produce enough electricity to supply around 1.6 million German households.

On the other hand, the Thor wind farm, located approximately 22 kilometers from the Jutland coast in Denmark, will boast a total capacity of 1.1 GW. This will render it Denmark's largest offshore wind farm and able to provide electricity to one million Danish households.

This strategic investment aligns with RWE’s broader financial goals. The German energy giant recently announced plans to reduce its net capital expenditures by €10 billion by 2030 due to increasing financial pressures in the renewable energy sector. The deal with NBIM offers a significant capital relief of €4 billion for RWE’s net cash investment while generating a €150 million book gain.

The €1.4 billion transaction, according to Bernstein analysts, is a 12% premium above the amount of capital already placed in the projects. Second, while the transaction allows RWE to cut its capital exposure, the firm will continue to be exposed to the market price for the first 15 years of the projects.

This move is part of a broader trend in the offshore wind sector, where major energy players are seeking financial flexibility through strategic partnerships. RWE’s decision to bring in Norway’s wealth fund as a co-investor helps mitigate financial risks while ensuring continued progress on large-scale renewable projects. The deal also supports Europe’s ambitious clean energy transition by expanding offshore wind capacity in two key markets.

Elsewhere in the sector, the same trends are being observed. BP recently announced its growth in offshore wind by acquiring full ownership of the Beacon Wind projects in the US. This indicates how large energy firms are reshaping their strategies to cope with economic uncertainties while continuing to focus on renewable investments.

For NBIM, this deal represents a bold move to expand its exposure to renewable energy assets. As the world's largest sovereign wealth fund, NBIM has been gradually diversifying its holdings away from traditional fossil fuel assets into sustainable energy infrastructure. With this deal with RWE for these offshore wind farms, the fund is furthering its focus on long-term environmental and financial sustainability.

As Europe continues to drive its green energy policy, such collaborations will be essential in accelerating the deployment of renewable energy. With the Nordseecluster and Thor wind farms due to come on stream in the next few years, millions of German and Danish homes will enjoy clean, renewable electricity, cementing offshore wind's position in the energy mix of the future.