CMS advises WindGrid on acquisition of the Tarchon interconnector project

CMS has advised WindGrid, the international development platform of transmission operator Elia Group, on its investment alongside CPP Investments in the acquisition of Tarchon, a subsea interconnector project between the UK and Germany, from Copenhagen Infrastructure Partners.

Tarchon will provide a 1.4 GW high-voltage direct current (HVDC) link between the United Kingdom and Germany. The project is expected to strengthen cross-border electricity flows, enhance security of supply and support the integration of renewable energy across markets. CPP Investments will provide a CAD 1bn commitment for a majority stake in the project. As a regulated asset, Tarchon is progressing through the relevant regulatory approvals processes in the UK and Germany.

Bernard Gustin, CEO Elia Group, 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.”

Daniela Baratto, CEO WindGrid, added: “Tarchon is an important project for WindGrid and reflects our partnership-led approach to supporting selected transmission infrastructure opportunities that are complementary to Elia Group’s core regulated activities. As electrification progresses and power systems become increasingly interconnected, well-developed cross-border infrastructure will remain important for the energy transition.”

Michael Carroll, Corporate Partner at CMS UK, commented: “We are delighted to have supported WindGrid on this important and complex acquisition alongside CPP Investments. The project brings together WindGrid’s transmission expertise and CPP Investments’ global investment capabilities, and highlights CMS’ expertise in advising on complex private capital joint ventures in the transmission space.”

The multinational CMS team was led by Michael Carroll, alongside Thomas Forman, Rob Gray and Munir Hassan (CMS UK); and Holger Kraft and Christian Friedrich Haellmigk (CMS Germany), with support from a core team of James Day, Edward Longden, Louise Marchington and Angeline Juventia (Energy: Corporate & Regulatory); and Jason Todd (Tax). Further support was provided by Tim Williams and Michelle Hincks (Real Estate); Robert Garden and Kenna Gordon (Planning); Brian Sher, Kabir Garyali and Finn Potter (Competition); and Sarah Ozanne (Employment). Further support was provided by Hans Fabian Kiderlen, Luise Völschow, Sebastian Belz, Malena Hansen and Fabienne Taller (CMS Germany); and Alexander IJkelenstam (CMS Netherlands).

The transaction further strengthens CMS’s position as a leading adviser on major subsea electricity infrastructure. CMS has advised on many of Europe’s most significant interconnector and offshore transmission projects, including NeuConnect, IFA2, Greenlink and the Eastern Green Links, bringing together market-leading corporate, regulatory, commercial and construction expertise across jurisdictions.

The transaction is expected to be completed by the end of 2026, subject to regulatory and closing conditions.