CPP Investments, Elia Group Acquire Tarchon HVDC Link

Canada Pension Plan Investment Board (CPP Investments) and Elia Group, through its international development platform WindGrid, have acquired the Tarchon subsea interconnector project linking the UK and Germany from Copenhagen Infrastructure V, a fund managed by Copenhagen Infrastructure Partners (CIP).

Approved by Great Britain's energy regulator Ofgem in 2024, Tarchon will be a high-voltage direct current (HVDC) link made up of underground and subsea cable, running approximately 760 kilometers (472 miles) between East Anglia in the UK and Niederlangen in Germany, and crossing Dutch territorial waters. The project is rated at 1.4 GW, with reported capability to transfer up to 1.8 GW of electricity in either direction, potentially supplying power to as many as 1.9 million households. The project remains in an early development phase, and its exact route through UK, German, and Dutch waters has yet to be finalized.

Under the transaction, CPP Investments will take a majority stake in Tarchon, providing a C$1 billion (approximately US$710 million / €623 million) commitment for around 75% ownership. Elia Group's investment, made through WindGrid, is structured as a minority participation representing a 25% look-through stake, which the company said remains limited in scale relative to its overall investment programme, consistent with its disciplined financial policy.

James Bryce, Head of Infrastructure at CPP Investments, described the acquisition as rooted in a shared commitment to long-term value creation and responsible infrastructure development, noting that combining CPP Investments' global investment capabilities with Elia Group's expertise in designing, building and operating transmission systems positions the partnership to deliver the project while generating risk-adjusted returns for CPP contributors and beneficiaries.

Elia Group CEO Bernard Gustin said the interconnector would help balance supply and demand while supporting the decarbonisation of energy systems, and pointed to the continued importance of cross-border projects in building a more integrated, resilient and sustainable European grid.

WindGrid CEO Daniela Baratto said Tarchon reflects the platform's partnership-led approach to supporting transmission infrastructure opportunities that complement Elia Group's core regulated activities, adding that well-developed cross-border infrastructure will remain important as electrification progresses and power systems become increasingly interconnected.

As a regulated asset, Tarchon is progressing through the relevant regulatory approval processes in the UK and Germany. The transaction is expected to complete by the end of 2026, subject to regulatory and closing conditions. The earliest possible start date for construction of the UK section of the link is 2030, with commercial operations targeted for 2034.