KKR and RWE are rich firms. Why do they need a UK state loan for their windfarms? | Nils Pratley

National wealth fund is to lend £1bn towards the Vanguard projects – but whether the private equity giant needed help is debatable

“This major investment in UK renewables is a vote of confidence for building in Britain,” declared the prime minister.

Andy Burnham is obviously correct that the two Vanguard windfarms off the coast of Norfolk are huge investments. Together, they require almost £13bn of debt financing. But he can’t claim they represent a fresh expression of confidence. The project has been on the runway since the German utility RWE, the developer, was awarded a contract to build the windfarms in January’s renewables auction.