Mubadala expands stake in European power grids

Abu Dhabi sovereign investor Mubadala has acquired $200 million of Equitix’s stake in Greenlink, deepening its exposure to European energy infrastructure as power markets seek stronger cross-border capacity and more flexible grids.

The transaction gives Mubadala a place alongside Equitix and Baltic Cable in Greenlink, the operator of a 504MW subsea electricity interconnector linking Great Britain and Ireland. The deal was announced on Tuesday and follows regulatory clearance in Europe for Mubadala, Equitix and Baltic Cable to hold joint control of the asset.

Greenlink is among the most strategic electricity links in the Irish Sea region. Running for about 190km between EirGrid’s Great Island substation in County Wexford and National Grid’s Pembroke substation in Pembrokeshire, Wales, the high-voltage direct current cable allows electricity to flow in either direction depending on supply, demand and price conditions in the two markets.

The interconnector’s nominal capacity is equivalent to the electricity needs of about 380,000 homes. Its entry into commercial operations in early 2025 added materially to Ireland’s electricity interconnection capacity, strengthening supply options at a time when renewable output is rising and power systems require faster balancing tools.

Mubadala said the investment reflected its focus on infrastructure assets that support more connected, efficient and resilient power systems. The move also extends its European energy infrastructure footprint at a time when institutional investors are directing more capital towards regulated or quasi-regulated networks, transmission assets and grid services linked to decarbonisation.

Greenlink has been designated a Project of Common Interest by the European Union, a status reserved for cross-border energy infrastructure considered important for market integration, supply security and climate objectives. Such projects are intended to support more integrated energy markets while improving the ability of countries to manage shocks, outages and variability in renewable generation.

Karim El Jazzar, Mubadala’s head of Europe and MENA infrastructure, said Greenlink represented infrastructure with “strategic relevance” and “sustainable economic value”. He said interconnectors were becoming more important as power markets evolved, particularly for cross-border electricity flows, renewable integration and grid stability.

Equitix chief investment officer Achal Bhuwania said the partnership brought together investors with infrastructure expertise and strengthened the Greenlink platform. He said the asset enhanced energy resilience, enabled cross-border connectivity and supported the shift towards a lower-carbon power system.

The deal follows Equitix and Baltic Cable’s acquisition of Greenlink from Partners Group, a transaction agreed in 2025 at an enterprise value of more than €1 billion. Partners Group had taken control of Greenlink in 2019, moved to full ownership in 2021, and oversaw the project through financing, construction and the start of operations.

Greenlink’s investment appeal lies partly in its regulatory framework. The asset is regulated by Ofgem in Great Britain and the Commission for Regulation of Utilities in Ireland under a cap-and-floor model, which sets upper and lower bounds on revenues. The structure gives investors long-term visibility while limiting excessive returns and offering protection against weak market revenue.

The cable also reflects a wider shift in European power infrastructure. As wind and solar generation expand, grids need stronger interconnection to move surplus electricity across borders, reduce curtailment and provide backup when local generation falls. Interconnectors can also help lower reliance on fossil-fuel generation during periods of tight supply, although their commercial performance depends on spreads between linked markets, availability and regulatory decisions.

For Ireland, Greenlink complements the East-West Interconnector, which was commissioned in 2012, and forms part of a broader strategy to increase links with Great Britain and continental Europe. The planned Celtic Interconnector with France is expected to strengthen direct access to mainland European power markets, while further potential links are being assessed as renewable generation grows.

For Great Britain, additional interconnection supports the government’s clean power ambitions by allowing more efficient electricity trading with neighbouring markets. The cable’s ability to move power both ways is particularly relevant during periods of high wind output, system stress or price volatility.