Mubadala Pays $200m for Greenlink Interconnector Stake, Extending Gulf Bet on UK Power
The Abu Dhabi fund acquires a portion of Equitix's share in the 504MW Ireland-Britain subsea cable, its second major UK clean energy commitment since mid-June.
Mubadala Investment Company paid $200m for a portion of Equitix's stake in Greenlink, the 504MW subsea electricity interconnector linking Ireland and Great Britain, Power Technology reported on Tuesday (2026-06-17). The deal gives Abu Dhabi's main investment vehicle a direct stake in one of the few operational cross-border power links serving the British market.4
Greenlink is a joint venture between Baltic Cable and Equitix. Mubadala acquired its holding from Equitix; the percentage of the JV transferred was not disclosed, nor was it confirmed whether Equitix retains a residual position. Baltic Cable holds the other side of the partnership.4
It is the second major UK energy infrastructure commitment from Mubadala in quick succession. In the weeks before the Greenlink announcement, the fund had disclosed a $325m investment in the 2.9GW Hornsea 3 offshore wind farm in the North Sea, Power Technology also reported. Together the two transactions put more than $525m of UAE sovereign capital into British clean energy assets within roughly a month.4
Greenlink earns revenue from capacity auctions and collects congestion rents tied to price spreads between the Irish Single Electricity Market and Great Britain's wholesale power market. When British prices trade above Irish ones the cable flows east and captures the differential; when the spread compresses or reverses, the direction and the economics shift. For a fund paying $200m for an infrastructure position, the depth and persistence of that spread over a multi-decade horizon matters more than any single quarter's congestion income.4
That spread is directly exposed to the UK government's proposed electricity market reforms. Ministers have proposed breaking the link between wholesale power prices and natural gas, under which the marginal gas plant currently sets the clearing price across the market. Industry broadly welcomed the intent but told Montel it must be designed to keep investment flows intact. Ofgem will define how any restructured pricing framework treats interconnector capacity revenues, a decision that shapes the commercial case for Greenlink going forward.2
Gulf sovereign capital has not historically been deterred by regulatory transitions in European energy markets. The sovereign funds of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE have collectively deployed more than $430bn in capital since 2021, according to The Economist, with infrastructure in advanced economies forming a growing share of that flow. Long investment horizons and patient liability profiles make regulated asset returns more attractive, not less.3
The regional context adds pressure on those same balance sheets. Iran's strikes on energy infrastructure have destroyed an estimated $25bn of oil and gas assets in the Gulf, according to Welligence, and any attempt to reduce shipping dependence on the Strait of Hormuz through new pipeline routes would require $30bn to $50bn more. Sovereign funds that are simultaneously supporting domestic rebuilding and deploying internationally face a tighter capital allocation environment than the pre-conflict baseline implied.3
The conflict is also accelerating Europe's own energy risk management. Industry participants told Montel that ongoing disruption has begun pushing more corporate and utility buyers toward long-term power purchase agreements, seeking contractual protection against gas-linked price spikes. For an interconnector owner, PPA-backed demand and longer-dated capacity commitments reduce reliance on volatile spot spread revenues and strengthen the asset's earnings stability in any pricing regime.1
Mubadala has not indicated whether it intends to increase its Greenlink position or acquire the remaining Equitix stake. Baltic Cable has not commented. Whether the $200m entry price reflects value at the right point in the UK electricity market reform cycle, or ahead of it, will become clearer as Ofgem's framework design progresses through consultation.4,2