AXA IM Alts has marked its entry into the UK battery energy storage system (BESS) market by acquiring a 50% stake in Coalburn 1 from Copenhagen Infrastructure Partners (CIP).
The €186bn global asset manager, has invested an unspecified sum on behalf of clients to acquire half of the 500MW BESS project, located in South Lanarkshire in Scotland.
CIP, which is is selling the 50% stake on behalf of its Copenhagen Infrastructure IV fund, is developing three transmission-connected BESS assets in Scotland, including Coalburn 1, and will remain responsible for project delivery. Coalburn 1 is expected to be operational in early 2026 upon completion.
Mark Gilligan, head of infrastructure, AXA IM Alts, said: “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.”
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 will 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.”
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