The partnership developing the interconnector project, comprised of Copenhagen Infrastructure Partners (CIP) and Volta Partners, confirmed this outcome follows on from the ‘minded-to’ position provided by Ofgem on 1 March 2024. The decision by Ofgem is a significant milestone for the Tarchon project and a positive development for the UK, supporting its ambitions to reach net zero by 2050 and its enabling policy of Clean Power by 2030. 

The project, linking Essex to Niederlangen in Lower Saxony, Germany, will increase the efficient use of renewable energy, as well as providing significant socio-economic welfare benefit and security of supply for both countries as they strive to achieve their net zero targets.  

Jonathan Wood, Project Director for Tarchon, said: “This is great news for the Tarchon project and demonstrates a commitment by the UK’s regulator to the value this interconnector will bring to both the UK and Germany, in helping reach ambitious renewable energy targets, reducing consumer bills, and enhancing energy security. The Tarchon Energy project will be a significant investment in UK and German infrastructure, unlocking significant socio-economic welfare benefit and major investment funding into a critical project to support regional ambitions.” 

The conclusion of the IPA enables the start of the next phase of assessment as part of the Window 3 process. Looking ahead to the FPA (Final Project Assessment) whereby the cap and floor values are set, subject to Post Construction Review, enabling the project’s financial investment decision to be made.  

The UK has clear targets for net zero by 2050 and its enabling policy of Clean Power by 2030, while Germany’s targets include reducing its greenhouse gas emissions to net zero by 2045. Interconnectors maximise the use of renewable energy by giving a country an efficient way to both import and export clean power.  By connecting the Great Britain and German energy markets, Tarchon Energy will make the electricity supply in both countries more resilient, secure, and sustainable.   

By increasing choice and competition in the British and German electricity markets, Tarchon Energy can help stabilize and even lower prices for consumers and businesses. The Tarchon interconnector will lower energy prices for UK consumers by providing more flexibility to the market, with a capacity for delivering 1.4 gigawatts of electricity; enough to power 1.5 million homes. 

Following the IPA outcome, the project will continue its development at pace, in accordance with the requirements of the Ofgem window 3 regime. The project will develop in coordination with the relevant German Authorities and responsibilities accompanying its designation as a Project of Mutual Interest.