Copenhagen Infrastructure Partners (CIP) has struck a deal to sell half of its stake in the Coalburn 1 battery energy storage system (BESS) to AXA IM Alts, marking a pivotal moment in the UK’s energy storage landscape. This strategic move, set to finalise upon the site’s commissioning in early 2026, underscores the growing appetite for energy storage solutions as the world pivots towards renewable energy.
The Coalburn 1 project, a 500MW, two-hour duration lithium-ion facility nestled in South Lanarkshire, southern Scotland, is more than just a power plant. It’s a testament to the UK’s ambition to bolster its energy security and integrate more renewable energy into the grid. With contracted revenues secured through a ten-year optimisation agreement with SSE and a 15-year capacity market agreement, Coalburn 1 is poised to play a crucial role in the UK’s energy mix.
AXA IM Alts’ entry into the UK energy storage market is a significant development. Mark Gilligan, Infrastructure head at AXA IM Alts, emphasised the importance of battery storage infrastructure in achieving national energy security and unlocking the full potential of renewable energy. This investment is not just about financial returns; it’s about delivering resilient, long-term value for communities, investors, and the environment.
CIP’s commitment to the UK’s energy storage sector is evident in its portfolio. With Coalburn 1, Coalburn 2, and Devilla projects underway, CIP is set to deliver 1.5GW of power capacity and 3GWh of electricity storage, enough to power over 4.5 million homes for two hours. But CIP isn’t stopping there. The company is also developing an additional 4.5GW of BESS projects in Scotland and England, further cementing its position as a key player in the UK’s energy transition.
The divestment deal with AXA IM Alts is a win-win. It allows CIP to share the risk and reward of the Coalburn 1 project while bringing in a partner with a strong commitment to sustainable investing. For AXA IM Alts, it’s an opportunity to enter the UK energy storage market and support the transition to a zero-carbon economy.
Beyond the UK, CIP’s global battery portfolio spans the US, Europe, and Australia, reflecting the worldwide trend towards energy storage. In March 2024, CIP partnered with GC Storage Services to develop a 2.3GW pipeline of large-scale BESS in Italy, further expanding its international footprint.
This news should spark debate and challenge norms in the energy sector. How will this deal shape the UK’s energy storage market? Will other investors follow AXA IM Alts’ lead? And how will CIP’s global portfolio evolve in response to this strategic move? One thing is clear: the energy storage sector is heating up, and players like CIP and AXA IM Alts are leading the charge. As Nischal Agarwal, CIP partner, put it, the delivery of Coalburn 1 and other BESS projects will improve the UK’s energy security, enable more low-cost renewables, and reduce costs for consumers. That’s a future worth fighting for.