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AXA IM Alts has acquired the intent in the 500MW Coalburn 1 project Copenhagen Infrastructure Partners (CIP), on behalf of its fund Copenhagen Infrastructure IV (CI IV), has signed an agreement to divest a 50% ownership stake in its 500MW Coalburn 1 BESS project, upon site commissioning, to alternative investor AXA IM Alts. Coalburn 1 is a 2-hour duration, lithium ion BESS, located in South Lanarkshire, in southern Scotland. CIP took a financial investment decision for Coalburn 1 in December 2023 and will continue to lead the project delivery through its current construction phase, and beyond the site’s commissioning which is expected in early 2026. The project has a high level of contracted revenues through a 10-year optimisation agreement with SSE, alongside a 15-year capacity market agreement, CIP said. Coalburn 1 is one of three transmission-connected BESS assets currently being constructed by CIP in Scotland, which collectively will have a total power capacity of 1.5GW and will be able to store and supply the grid with a total of 3GWh of electricity. Nischal Agarwal, CIP partner, said: 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. Mark Gilligan, head of infrastructure at AXA IM Alts, added: 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. |
