The pension giant takes majority control of Tarchon, a 1.4 GW cable connecting two grids
The Canada Pension Plan Investment Board will commit $1bn for a majority stake in Tarchon, a planned subsea power link between the UK and Germany, buying the project alongside Belgian grid operator Elia Group.
CPP Investments and Elia Group, investing through its international development platform WindGrid, said they had agreed to acquire the interconnector from Copenhagen Infrastructure V, a fund managed by Copenhagen Infrastructure Partners.
The fund's $1bn commitment secures the majority holding, according to the announcement.
Elia Group's stake, held through WindGrid, is structured as a minority participation representing a 25 percent look-through interest.
Tarchon would deliver a 1.4 GW high-voltage direct current connection between the two countries.
The link would strengthen cross-border electricity flows, improve security of supply and help integrate renewable power across markets, the two said.
As a regulated asset, the project is progressing through approval processes in both the UK and Germany.
James Bryce, head of infrastructure at CPP Investments, framed the deal as a return-generating investment for the pension fund.
Pairing the fund's investment capabilities with Elia Group's transmission experience would position the partnership to deliver Tarchon while allowing CPP Investments to "generate strong risk-adjusted returns for CPP contributors and beneficiaries," Bryce said.
The acquisition extends the fund's investment in European energy infrastructure, according to the announcement.
Bernard Gustin, chief executive of Elia Group, said the interconnector would help balance supply and demand between regions and support the decarbonisation of energy systems.
Daniela Baratto, WindGrid's chief executive, described the project as complementary to Elia Group's core regulated activities.
Elia Group said its investment remained small relative to its overall programme.
The transaction is expected to close by the end of 2026, subject to regulatory and closing conditions.
