Copenhagen Infrastructure Partners (CIP), a fund manager within greenfield energy investments, on behalf of its fund Copenhagen Infrastructure IV (CI IV), has entered into an agreement to divest a 50% ownership stake in the Coalburn 2 project to funds managed by AIP Management, an investor that specializes in energy and decarbonization infrastructure.
The Coalburn 2 project, located in South Lanarkshire, southern Scotland, is a 500 MW/1,000 MWh lithium-ion storage project currently under construction. CIP, which made its financial investment decision in late 2024, will continue the construction, while the ownership transfer to AIP will occur upon commissioning.
The project benefits from strong contractual backing, including a 10-year optimization agreement with SSE and a 15-year capacity market contract, expected to ensure stable returns with potential for market upside. It is one of three utility-scale BESS assets being built by CIP and Alcemi in Scotland, with a total operational capacity of 1.5 GW/3 GWh.
Nischal Agarwal, Partner at CIP, said: “As CIP’s development and construction portfolio of U.K. 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 U.K.’s energy security, enable more low cost renewables to be delivered, and reduce costs for British consumers through enhanced system flexibility.”
According to Mercom’s 1H and Q2 2025 Funding and M&A Report for Energy Storage report, announced Energy Storage project financing increased 168% year-over-year in 2025.
In September, DRI, an Amsterdam-based renewable energy company and a subsidiary of the DTEK Group, announced the acquisition of rights to build a 112 MW/448 MWh battery energy storage system from Greenvolt Group, a renewable energy project developer. The project, located in Kozienice, Poland, was acquired through Greenvolt Power, a renewable energy project developer.
