CPP Investments buys majority of interconnector firm Tarchon in $720M energy push
What's the deal? The Canada Pension Plan Investment Board has acquired a majority stake in Tarchon Energy Ltd.Dealroom has a profile for this one. Try Dealroom →, a company developing a subsea interconnector between Germany and the UK. CPP Investments will put in roughly US$733.3M, buying the stake from Copenhagen Infrastructure Partners'Dealroom has a profile for this one. Try Dealroom → Copenhagen Infrastructure V fund.
What's the endgame? Tarchon plans a 1.4-gigawatt high-voltage direct current link between the two countries to strengthen cross-border electricity flows and supply security. CPP Investments is backing the project alongside Belgian energy infrastructure firm Elia GroupDealroom has a profile for this one. Try Dealroom →'s WindGrid platform, which will hold a 25% look-through stake — implying CPP holds the remaining 75%.
Why now? The deal is CPP Investments' fourth major energy infrastructure investment in less than a year, underscoring an accelerating push into the sector by the US$581.5B pension giant.
In February, it agreed to buy a 50% stake in Peruvian power generator Inkia EnergyDealroom has a profile for this one. Try Dealroom →, valued at $3.4 billion. In October 2025, it committed $1 billion for a minority position in US power platform AlphaGen. A year ago, it agreed to a roughly 13% stake in Sempra Infrastructure PartnersDealroom has a profile for this one. Try Dealroom → for about $3 billion, alongside KKR affiliates.
What could go wrong? The interconnector still needs approval from regulators in both the UK and Germany. The deal is expected to close by the end of the year.
"The Tarchon interconnector project contributes to balancing supply and demand, while supporting the decarbonization of energy systems," Elia Group chief executive officer Bernard Gustin said in a statement.
The signal: Large institutional investors are steadily channelling capital into energy infrastructure, particularly cross-border grid projects tied to Europe's push for a more integrated and resilient electricity system.
Read more: ai-cio.com
Image credit: Admitter
