Copenhagen Infrastructure Partners (CIP) has agreed to divest a 50% stake in its 500-megawatt Coalburn 2 battery energy storage system (BESS) project in South Lanarkshire, Scotland, to funds managed by AIP Management. The sale was announced on behalf of CIP’s Copenhagen Infrastructure IV fund.
The transaction will be completed upon the project’s commissioning, which is expected in 2027. CIP will continue to lead the project through its construction phase.
Coalburn 2 is designed as a two-hour lithium-ion storage facility and, once operational, is projected to rank among the largest battery storage systems in Europe. The project aims to enhance grid stability and facilitate the integration of renewable energy into the UK’s power system.
The facility is supported by a 10-year optimisation agreement with SSE and a 15-year capacity market contract, which CIP said would help ensure stable financial returns while retaining potential upside from market exposure.
Coalburn 2 is one of three transmission-connected BESS projects co-developed by CIP and UK-based developer Alcemi. Together, the projects will provide a combined capacity of 1.5GW and 3GWh of storage. CIP also reported that it is developing an additional 4.5GW of battery storage capacity across the UK.
“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,” said Nischal Agarwal, partner at CIP.
He added that the project, alongside CIP’s Coalburn 1 and Devilla developments, “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.”
AIP, a Copenhagen-based infrastructure investor, said the deal aligns with its strategy of selective partnerships in the UK’s energy storage sector.
“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,” said Greg Falzon, partner and co-head of investments at AIP. “Together with our recent Ardenham investment, it forms part of a growing portfolio that combines strong downside protection with long-term value creation.”
CIP stated that the divestment supports its broader ambitions in battery storage, where it maintains an active presence across Europe, the United States, and Australia. AIP noted that the Coalburn 2 investment contributes to its 7GW clean energy portfolio, which it says helps avoid approximately 10 million tonnes of carbon dioxide emissions.
