CPP Investments and Elia Group acquire 1.8 GW Tarchon North Sea interconnector project from Copenhagen Infrastructure Partners for approximately C$1 billion

Canada Pension Plan Investment Board (CPP Investments) and Belgian transmission system operator Elia Group, through its international infrastructure platform WindGrid, have acquired the Tarchon subsea interconnector project from Copenhagen Infrastructure V, a fund managed by Copenhagen Infrastructure Partners (CIP). Tarchon is a planned 1.4 GW high-voltage direct current (HVDC) link, meaning electricity is transmitted as direct current rather than alternating current, which is more efficient over long distances. The approximately 760-kilometre cable network will run underground and subsea between East Anglia in the UK and Niederlangen in Germany, crossing Dutch territorial waters. It was approved by Ofgem, Great Britain's energy market regulator, in 2024. CPP Investments is providing a commitment of C$1 billion for a 75 percent majority stake in the project. Elia Group, through WindGrid, holds the remaining 25 percent structured as a minority participation. The project remains in an early development phase, with the earliest construction start in the UK set for 2030 and commercial operations targeted for 2034. Closing is expected by end-2026, subject to regulatory and closing conditions in the UK and Germany. The interconnector is described as a regulated asset, meaning its revenues will flow through a regulated framework rather than purely merchant market pricing. At full capacity, Tarchon is expected to supply up to 1.9 million households. The deal extends CPP Investments' existing infrastructure partnership with Elia Group and supports both countries' decarbonisation objectives by enabling cross-border renewable electricity flows.