Copenhagen Infrastructure Partners (CIP) is poised to start construction of two further Battery Energy Storage System (BESS) projects in Scotland through its flagship fund CI IV, and in partnership with Alcemi.
Coalburn 2 is situated in South Lanarkshire, adjacent to CIP’s existing Coalburn 1 BESS project, and Devilla is situated in Fife, near the town of Kincardine. Each project is sized at 500MW and, once commissioned, will be the largest battery storage projects in Europe.
These two projects represent an investment of approximately £800m. They expand CIP’s UK BESS construction portfolio from one to three projects and make CIP the largest battery storage investor in the UK.
The CIP BESS portfolio (Coalburn 1, Coalburn 2, and Devilla) will have total power capacity of 1.5GW and will be able to store and supply the grid with a total of 3GWh of electricity, equivalent to the electricity demand of over 4.5 million households, across a two-hour period.
Nischal Agarwal, partner at CIP, said: “CIP’s latest investments in Scottish battery energy storage will support the UK’s pursuit of a clean power system by 2030 and delivering a net zero carbon economy by 2050. Battery storage, which is well located, like our Coalburn and Devilla projects, enhances energy security, provides the grid with much needed flexibility and enables low cost renewables to be deployed faster.
“CIP is fully committed to a vibrant Scottish renewable sector, and we are thrilled to welcome the First Minister John Swinney, and Cabinet Secretary Gillian Martin, to our Coalburn sites to mark our recent investment decisions and start of construction of Coalburn 2.”
Scotland’s First Minister John Swinney said: “The construction of the two largest battery systems in Europe, in South Lanarkshire and Fife, delivered by international investment, is to be welcomed as a significant contribution to the growth of Scotland’s energy transition infrastructure. By helping to supply reliable and secure power to our homes and businesses, well-located storage systems, such as batteries and pumped hydro storage, can move us closer to net zero and directly support the communities around them. Scotland is open for business when it comes to new investments in the technologies and systems that will play a role in our just energy transition.”
UK Minister for Investment Baroness Gustafsson said: “This £800 million commitment is a major vote of confidence in the UK’s investment environment and supports our mission to become a clean energy superpower. With energy being identified as a growth sector in our upcoming Industrial Strategy, we’re not only helping to attract and secure investment, but providing affordable, reliable renewable energy for people across the country.”
In February 2022, CIP’s CI IV fund entered a partnership with Alcemi, a large-scale BESS developer, to develop a UK wide portfolio of BESS projects to Financial Investment Decision. CIP has made a FID for Coalburn 2 and Devilla around one year after an equivalent decision for Coalburn 1.
James Forster, development director of Alcemi, added: “The partnership between CIP and Alcemi has gone from strength to strength and has grown into what both companies envisioned. We’re proud to be a significant part of CIPs growth to becoming the UK’s largest battery storage investor. We look forward to continuing to work together, delivering more strategic projects that will enable a clean power system by 2030.”
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