AXA IM Alts Partners with CIP to Invest in Europe’s Largest Battery Storage Project

Copenhagen Infrastructure Partners (CIP), through its fund Copenhagen Infrastructure IV (CI IV), has signed an agreement to sell a 50% stake in the Coalburn 1 project to AXA IM Alts, a global leader in alternative investments, once the project is commissioned.

Coalburn 1 is a 500MW lithium-ion battery energy storage system (BESS) located in South Lanarkshire, Scotland. The project, which has a 2-hour duration, was greenlit by CIP in December 2023, and CIP will continue to oversee its construction, with commissioning expected in early 2026. It has a secure revenue stream, thanks to a 10-year optimisation deal with SSE and a 15-year capacity market agreement.

This project is part of CIP's broader energy storage efforts in Scotland, which includes three transmission-connected BESS assets totaling 1.5GW, capable of storing and supplying 3GWh of electricity—enough for 4.5 million households for two hours. CIP is also developing an additional 4.5GW of BESS capacity across Scotland and England.

CIP's strategic growth is evident in its CI V fund, which recently surpassed EUR 12 billion in size and focuses on renewable energy technologies, including wind, solar, and storage, across Europe, North America, and Asia Pacific. The company’s portfolio of battery storage projects across the US, UK, Europe, and Australia solidifies its position as a global leader in the sector.

Nischal Agarwal, CIP Partner, remarked, “With Coalburn 1 set to be Europe’s largest operational BESS project by 2026, we are pleased to welcome AXA IM Alts as a partner. This project, along with others like Coalburn 2 and Devilla, will strengthen the UK’s energy security, integrate more affordable renewables, and lower consumer costs by enhancing system flexibility.”

Mark Gilligan, Head of Infrastructure at AXA IM Alts, added, “Investing in Coalburn 1 is a significant step as we enter the UK energy storage market. Battery storage is critical for ensuring national energy security and unlocking the potential of renewable energy. We look forward to working with experienced sector leaders to deliver long-term value for communities, investors, and the environment.”