Elia Group and the Canada Pension Plan Investment Board (CPP Investments) have agreed to acquire the Tarchon interconnector project, a high-voltage subsea electricity link between the UK and Germany.
The transaction will see CPP Investments take a majority stake for a commitment of around C$1bn, with Elia Group participating through its WindGrid subsidiary for a 25% minority interest.
The seller is Copenhagen Infrastructure V, managed by Copenhagen Infrastructure Partners.
Tarchon aims to deliver a 1.4GW high-voltage direct current (HVDC) cable connecting energy grids in the UK and Germany. It aims to support cross-border electricity flows, strengthen supply security and enable the integration of renewable energy.
The project is progressing through regulatory approval processes in both countries.
The deal is expected to close by the end of 2026, subject to standard closing and regulatory conditions.
According to the companies, the Tarchon interconnector will enable up to 1.8GW of electricity to be transferred in either direction, with the potential to supply power to as many as 1.9 million households.
CPP Investments Infrastructure head James Bryce said: “We are delighted to be partnering with Elia Group on the development of the Tarchon interconnector. This acquisition is rooted in a shared commitment to long-term value creation and responsible infrastructure development.”
Elia Group CEO Bernard Gustin said: “By enabling more efficient energy exchange between regions, the Tarchon interconnector project contributes to balancing supply and demand, while supporting the decarbonisation of energy systems.
“The project also reflects the strength of the partnership between Elia Group and CPP Investments in advancing energy infrastructure, highlighting the continued importance of cross-border projects in building a more integrated, resilient and sustainable European grid.”
Elia Group’s investment in Tarchon is described as limited in proportion to its wider investment programme.
In February 2026, CPP Investments confirmed plans to acquire a 50% stake in Inkia Energy, in partnership with I Squared Capital.
