Copenhagen Infrastructure Partners has struck a major deal to offload half of its stake in a key Scottish battery project, just months before its massive energy storage system is due to come online.
CIP confirmed on April 28 that it will sell 50% of its 500MW Coalburn 1 battery energy storage system (BESS) to AXA IM Alts. The deal will kick in once the site, located in South Lanarkshire, is up and running — which is expected in early 2026.
The transaction comes as part of CIP’s broader strategy to rotate capital within its Copenhagen Infrastructure IV fund, while still retaining leadership over the project through the build and beyond.
AXA’s First Big UK Battery Play
For AXA IM Alts, this is more than just a buy-in.
It’s a door-opener.
“This marks a significant milestone as we enter the UK energy storage market,” said Mark Gilligan, AXA IM Alts’ Head of Infrastructure. He called battery storage “critical” to both energy security and unlocking renewables.
That’s a big statement. But this isn’t just corporate fluff. The Coalburn 1 site is no ordinary facility. It’ll be the biggest BESS in Europe once online, and it’ll play a crucial role in keeping the grid stable during peak demand and renewable intermittency.
So yeah, AXA’s going all in here.
The Specs: Big Numbers, Big Ambitions
Coalburn 1 isn’t just about potential. It’s packing serious power.
With a rated output of 500MW and a two-hour duration, this lithium-ion battery site will offer 1 gigawatt hour (GWh) of storage. That’s enough to supply over 1.5 million homes for a two-hour window.
And it’s not standing alone either.
CIP is building two other massive grid-scale battery storage projects nearby — Coalburn 2 and Devilla. Together, these three sites will offer 1.5GW of capacity and 3GWh of storage.
Just take a look:
| Project Name | Capacity (MW) | Storage (GWh) | Location | Commissioning Date |
|---|---|---|---|---|
| Coalburn 1 | 500 | 1.0 | South Lanarkshire | Early 2026 |
| Coalburn 2 | 500 | 1.0 | South Lanarkshire | TBC |
| Devilla | 500 | 1.0 | Fife | TBC |
The Coalburn 1 project was given the green light in December 2023 when CIP made its final investment decision (FID). Since then, the site has moved into full construction mode, with CIP keeping the reins firmly in its hands.
Long-Term Value, Locked In
The business model here isn’t flying blind.
CIP has secured a 15-year capacity market agreement. On top of that, it’s struck a 10-year optimisation deal with SSE — a deal that guarantees contracted revenue streams once the project goes live.
That’s not just smart planning. It’s future-proofing.
And it means investors like AXA IM Alts can walk in confident they’re not taking on unmitigated risk. For energy infrastructure, that kind of predictability is golden.
One sentence here. The kind that keeps the reading pace natural.
CIP’s Expanding Battery Empire
Coalburn 1 is just one part of a much bigger picture.
Across Scotland and England, CIP is developing an additional 4.5GW of BESS projects. That’s on top of the 1.5GW already under construction. It’s a tidal wave of storage projects coming down the pipeline — and it’s making CIP one of the biggest names in the battery space, not just in the UK but globally.
Let’s not forget:
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CIP’s CI V fund has surpassed €12 billion.
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The fund targets solar, wind, and battery storage across Europe, North America, and Asia Pacific.
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In March 2024, CIP signed a deal in Italy to develop 2.3GW of BESS with GC Storage Services.
That’s big league stuff.
Why This Matters for Scotland’s Grid
Scottish renewable energy generation has soared in recent years, thanks to rapid growth in wind and solar.
But storing that power? That’s been the sticking point.
Coalburn 1 — and projects like it — solve that problem.
By soaking up power when the wind’s blowing and releasing it during demand spikes, battery storage helps prevent waste, balance frequency, and reduce reliance on fossil backup.
One-liner again. Breaks things up nicely.
As Nischal Agarwal, partner at CIP, put it: “The delivery of Coalburn 1… will improve the UK’s energy security, enable more low-cost renewables, and reduce costs for British consumers.”
That’s the trifecta everyone’s after — security, sustainability, and savings.
Who’s Really Winning Here?
Let’s not pretend this is just a feel-good story about climate action.
This is about big business making a long-term bet on energy storage as the backbone of tomorrow’s grid.
And it’s not just CIP and AXA that stand to gain:
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The UK government gets enhanced grid flexibility.
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Scottish consumers get lower energy bills in the long run.
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Investors get stable returns from locked-in contracts.
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And local communities benefit from construction jobs and infrastructure investment.
Basically, it’s a win for most of the food chain.
Even with all the green goals and zero carbon headlines, it’s the economics that are driving deals like this one. And in 2025, the economics of battery storage are finally starting to make sense.
