Copenhagen Infrastructure Partners divests 50% ownership stake in BESS project

Once operational, the new project will be among Europe’s largest battery storage facilities, supporting grid stability and the integration of renewable energy generation.

Coalburn 2 is a 500 MW, 2-hour duration, lithium ion battery energy storage system (BESS), located in South Lanarkshire in southern Scotland. CIP took a financial investment decision for Coalburn 2 in December 2024 and will continue to lead the Coalburn 2 project delivery through its current construction phase. Coalburn 2’s 50% ownership stake transfer to AIP shall occur upon site commissioning. The project has a high level of contracted revenues through a 10-year optimisation agreement with SSE, alongside a 15-year capacity market agreement, providing visibility and a stable foundation for returns while maintaining exposure to market upside.

Coalburn 2 is one of three transmission-connected BESS assets co-developed by Alcemi and CIP that are currently being constructed by CIP in Scotland. These will collectively have a total power capacity of 1.5 GW and will be able to store and supply the grid with a total of 3 GWh of electricity, enough to supply over 4.5 million households for two hours. CIP is developing a further 4.5 GW of BESS projects across Scotland and England.

Coalburn 2 is part of an expanding CIP portfolio of UK energy infrastructure investments which – alongside the company’s portfolio of battery projects across the US, Europe, and Australia – makes it one of the leading investors of battery storage projects globally.

For AIP, the investment in Coalburn 2 marks a significant step in its strategy to build a portfolio of high-quality battery storage assets that provide flexible capacity to the UK’s electricity system. AIP focuses on investing in assets that are either ready to construct or operational, avoiding early-stage development risks. It follows AIP’s recent investment in a 2.4 GWh portfolio of operational and under-construction BESS projects, reflecting its growing presence as a long-term investor in the UK energy storage sector. To date, AIP’s investments have a combined capacity of approximately 7 GW, which will collectively contribute to avoiding 10 million t of greenhouse gas emissions.

Nischal Agarwal, Partner at CIP, responded: “As CIP’s development and construction portfolio of UK BESS projects continues to progress and grow, we look forward to welcoming AIP as a new partner on our Coalburn 2 site, which once commissioned in 2027 will be one of Europe’s biggest operational BESS projects. The delivery of Coalburn 2, alongside CIP’s Coalburn 1 and Devilla projects, will improve the UK’s energy security, enable more low-cost renewables to be delivered, and reduce costs for British consumers through enhanced system flexibility.”

Greg Falzon, Partner and Co-Head of Investments at AIP, added: “This investment reinforces our conviction in the UK energy storage market and reflects our strategy of partnering selectively on high-quality ready-to-build or operational assets. Together with our recent Ardenham investment, it forms part of a growing portfolio that combines strong downside protection with long-term value creation.”

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