CIP has also recently announced its intention to sell a 50% stake in its Coalburn 1 Battery Energy Storage System (BESS) project. This massive facility, situated near the town of Motherwell, South Lanarkshire, southern Scotland, has a capacity of 500 megawatts (MW). The highly anticipated project is currently under construction and is expected to enter revenue service by early 2026. What’s more, it will help build a more robust energy infrastructure across the UK.
Coalburn 1 provides a memorable 1 gigawatt-hour (GWh) of electricity storage. It can hold that output for a complete two hours, making it a tremendous asset to bolster reliability on the grid. This flexibility is what makes it one of the most valuable resources for keeping our energy supply reliable. This is particularly urgent as the UK continues to decarbonise its electricity generation. With Coalburn 1 now advancing, CIP is in active development on two additional transmission-connected BESS projects in Scotland. Combined, these projects will offer a strong power capacity of 1.5 gigawatts and allow the store and deliver electricity through up to 3 GWh.
The final investment decision (FID) for Coalburn 1 was made in December of 2023. The development succeeds based on the contracted revenues from a ten-year optimization agreement with SSE. It has locked up a strong 15-year capacity market contract. These arrangements are expected to enhance the project’s financial viability while reinforcing its importance in the UK’s energy landscape.
Nischal Agarwal, a representative from CIP, expressed enthusiasm about the partnership with AXA IM Alts, stating:
“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 shall 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.”
CIP is firmly committed to bringing Coalburn 1 to realization. Simultaneously, they’re leading the charge for 4.5 GW of BESS projects all throughout Scotland and England. In March 2024, the enterprise joined forces with GC Storage Services. Through this exit, together they are creating a pipeline of 2.3 GW of large-scale BESS in Italy with CI V fund. This fund is specifically aimed at making investments in all kinds of renewable energy technologies, including wind, solar photovoltaic systems, and energy storage.
Mark Gilligan, another key figure involved in this initiative, highlighted the significance of this investment:
“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.”