Wedoany.com Report-Apr. 28, AXA IM Alts, managing €186 billion in alternative investments, has acquired a 50% stake in Coalburn 1, a 500MW battery energy storage system (BESS) in South Lanarkshire, Scotland, from Copenhagen Infrastructure Partners (CIP). Set for completion in early 2026, Coalburn 1 will be Europe’s largest battery facility, marking AXA’s entry into the UK energy storage market and supporting its goal to advance low-carbon infrastructure.
Coalburn 1 is part of CIP’s 1.5GW Scottish battery storage portfolio, capable of storing and supplying 3GWh of electricity, sufficient to power 4.5 million households for two hours. As the UK aims for a fully decarbonized power market by 2035, relying heavily on renewable energy, battery storage is essential to manage supply and demand fluctuations. In Scotland, where renewable energy output often exceeds grid capacity, Coalburn 1’s direct connection to the transmission network will help reduce curtailments and optimize energy use.
The project’s financial stability is supported by a 10-year offtake agreement and dual Capacity Market contracts: 300MW for 15 years and 75MW for 7 years. These agreements ensure reliable revenue, making the project attractive for institutional investors. Mark Gilligan, Head of Infrastructure at AXA IM Alts, stated: “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.”
AXA IM Alts’ investment aligns with its €15 billion infrastructure portfolio, focusing on decarbonization and electrification. The UK is projected to require over 20GW of storage by 2030 to meet renewable energy targets, offering significant opportunities for investors. Coalburn 1 provides stable returns with lower volatility compared to traditional energy assets, addressing the growing need for reliable, low-carbon infrastructure.
By partnering with CIP, AXA IM Alts aims to deliver long-term value for communities, investors, and the environment. The Coalburn 1 project not only supports Scotland’s renewable energy goals but also sets a precedent for large-scale battery storage investments, contributing to a sustainable and resilient energy future in the UK.
