Target Overview

Greenlink Interconnector is a 504 MW subsea electricity link that connects Great Britain and Ireland. With an impressive infrastructure comprising two converter stations joined by 190 km of high-voltage cables beneath the Irish Sea, the interconnector plays a crucial role in enhancing the energy market in both countries.

Acquired by Partners Group, Greenlink has undergone significant development since 2019, achieving full ownership in 2021. Following this acquisition, the project proceeded through financial closing and construction, with initial commercial operations expected to commence in early 2025. This initiative represents Europe’s first project-financed interconnector, ensuring an impactful contribution to energy integration in the region.

Industry Overview

The energy industry in both Great Britain and Ireland has been undergoing rapid transformation, driven by the urgent need for renewable energy sources and the ambition to enhance grid stability. In recent years, both regions have prioritized investments in renewable projects, aiming to decrease reliance on fossil fuels and increase energy security.

Amidst the global energy transition, the demand for innovative solutions such as interconnectors has surged. These investments not only facilitate broader access to renewable energy but also improve stability across interconnected grids. The emergence of projects like Greenlink highlights the collaborative efforts between countries to bolster sustainable practices in energy production and consumption.

In addition, government policies and incentives in both nations have created a favorable environment for infrastructure investments. The Cap & Floor regime operating in Britain and Ireland further solidifies this by offering downside protection and predictable cash flows that align with the interests of investors, thus enhancing the viability of long-term projects.

As both nations continue to advance towards their respective net-zero targets, the focus will increasingly shift towards integrating renewable energy within the grid, highlighting the importance of projects like Greenlink as keystones in achieving these goals.

Rationale Behind the Deal

The decision by Partners Group to sell Greenlink Interconnector to Baltic Cable AB and Equitix for over €1 billion stems from the firm's strategic focus on energy transition investments and infrastructure development. After successfully steering the project through its development phases, Partners Group recognizes the optimal timing to leverage the significant value created through its ownership.

Furthermore, the interconnector's potential contribution to energy security and stability reinforces its attractiveness to incoming investors. The ongoing expansion of renewable energy in both Great Britain and Ireland presents growth opportunities, making this a timely and strategic exit for Partners Group.

Investor Overview

Baltic Cable AB and Equitix, the new owners of Greenlink Interconnector, are recognized for their commitment to developing and managing sustainable infrastructure projects. Through this acquisition, they will gain access to a critical asset that aligns with their investment strategies focused on energy transition and renewables.

Equitix, in particular, specializes in long-term investments in infrastructure assets, ensuring that they remain aligned with governmental energy policies and sustainability goals. With the support of Baltic Cable AB, the group is well-positioned to enhance the operational capabilities of Greenlink and expand its impact in the energy sector.

View of Dealert

The acquisition of Greenlink Interconnector by Baltic Cable AB and Equitix appears to be a strategic move that not only reflects the growing demand for energy integration but also emphasizes the importance of large-scale renewable energy projects. This investment is poised to become a cornerstone in facilitating the energy transition in two significant markets.

From the perspective of sustainability experts, this deal holds promise as it aligns with present-day priorities for clean energy sources and infrastructure stability. The Cap & Floor regime offers an additional layer of financial security, making the project attractive for long-term investment.

Moreover, with growing government support for renewable energy initiatives, Greenlink's operational capacity is set to increase, positioning it to respond effectively to future energy demands. This investment could indeed be perceived as an opportune entry point into a rapidly expanding sector.

In summary, Greenlink Interconnector not only represents a financial asset but also embodies the critical infrastructure necessary to navigate the energy transition. The strategic alignment of Baltic Cable AB and Equitix with this initiative suggests confidence in its future value and impact.

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