Copenhagen Infrastructure Partners (CIP) has agreed to sell a 50% stake in its 500MW Coalburn 2 battery storage project in South Lanarkshire, Scotland, to funds managed by AIP Management.
CIP said the divestment, made on behalf of its Copenhagen Infrastructure IV fund, will see AIP acquire its share upon commissioning, with CIP continuing to lead the project through construction.
Coalburn 2, a two-hour lithium-ion system, will be among Europe’s largest battery storage facilities once operational, supporting grid stability and the integration of renewable generation.
The project benefits from a 10-year optimisation agreement with SSE and a 15-year capacity market contract, providing stable returns while maintaining exposure to market upside.
Coalburn 2 is one of three transmission-connected battery assets co-developed by Alcemi and CIP, with a combined 1.5GW of capacity and 3GWh of storage under construction in Scotland. CIP is also developing a further 4.5GW of battery projects 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 CIP partner Nischal Agarwal.
“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,” he added.
AIP partner and co-head of investments Greg Falzon said: “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.”
CIP said the deal strengthens its global leadership in battery storage, with projects across Europe, the US and Australia, while AIP’s investment forms part of a 7GW clean energy portfolio contributing to avoiding 10 million tonnes of CO₂ emissions.