Copenhagen Infrastructure Partners (CIP) has agreed to divest a 50% stake in its Coalburn 1 battery energy storage system (BESS) to AXA IM Alts.
The agreement will take effect upon the site’s commissioning.
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The divestment agreement was signed by CIP on behalf of its Copenhagen Infrastructure IV (CI IV) fund.
AXA IM Alts Infrastructure head Mark Gilligan stated: “Our investment in Coalburn 1 marks a significant milestone as we enter the UK energy storage market, reinforcing our commitment to supporting the transition to a zero carbon economy.
“Battery storage infrastructure is critical to achieving national energy security and unlocking the full potential of renewable energy, and we look forward to working with experienced leaders of the sector to deliver resilient, long-term value for communities, our investors and the environment.”
Coalburn 1 is a 500MW, two-hour duration lithium-ion facility located in South Lanarkshire, southern Scotland.
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By GlobalDataIn December 2023, CIP took the financial investment decision (FID) for Coalburn 1.
The site’s commissioning is expected in early 2026.
CIP will continue to lead the delivery of Coalburn 1 through construction and post-commissioning.
The project is marked by contracted revenues via a ten-year optimisation agreement with SSE alongside a 15-year capacity market agreement.
CIP is currently constructing three transmission-connected BESS projects in Scotland, including Coalburn 1. Together, these assets will have a power capacity of 1.5GW and can store and provide the grid with 3 gigawatt hours (GWh) of electricity. This is sufficient to power more than 4.5 million homes for two hours.
CIP is also developing an additional 4.5GW of BESS projects in Scotland and England.
Coalburn 1 is part of the growing CIP portfolio of UK energy infrastructure investments. Its CI V flagship fund recently exceeded €12bn. This fund is dedicated to investing in renewable energy technologies, including wind, solar photovoltaic and energy storage, with a geographical focus that spans Europe, North America and the Asia Pacific region.
CIP partner Nischal Agarwal stated: “As CIP’s development and construction portfolio of UK BESS projects continues to progress and grow, we look forward to welcoming AXA IM Alts as a new partner on our Coalburn 1 site, which once commissioned in 2026 shall be Europe’s biggest operational BESS project.
“The delivery of Coalburn 1, alongside CIP’s Coalburn 2 and Devilla construction projects, will improve the UK’s energy security, enable more low-cost renewables to be delivered, and will act to reduce costs for British consumers through enhanced system flexibility.”
In March 20242, CIP partnered with GC Storage Services via its CI V fund to develop a 2.3GW pipeline of large-scale BESS in Italy.
