AXA IM Alts, a global leader in alternative investments with €186bn of assets under management, has acquired a 50% stake in Coalburn 1, a 500MW battery energy storage system (BESS) from Copenhagen Infrastructure Partners (CIP). Located in South Lanarkshire, Scotland, this strategic debut into the UK energy storage sector will create Europe's largest battery facility when completed in early 2026, aligning with AXA's commitment to accelerate the low-carbon transition through transformative infrastructure investments.
The Coalburn 1 project forms part of CIP's ambitious 1.5GW Scottish battery storage portfolio, capable of storing and supplying 3GWh of electricity – enough to power 4.5m households for two hours. As the UK transitions to intermittent renewable energy sources to meet its 2035 fully decarbonised power market target, battery storage has emerged as the critical missing link to balance supply and demand fluctuations. This becomes especially vital in Scotland where significant renewable curtailment creates a compelling investment case that has previously gone unaddressed by major institutional investors.
With direct connection to the electricity transmission network, Coalburn 1 is strategically positioned to alleviate grid constraints and reduce costly curtailments of Scotland's substantial renewable energy output. Financial stability is underpinned by a 10-year offtake agreement alongside dual Capacity Market contracts spanning 15 years (300MW) and 7 years (75MW), providing robust revenue certainty that should attract further institutional investment to the sector.
Mark Gilligan, Head of Infrastructure, AXA IM Alts, commented: "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."
The transaction reflects AXA IM Alts' strategic focus on its €15bn infrastructure portfolio, emphasising assets that accelerate decarbonisation, electrification and digitalisation. Industry analysts suggest the UK will need over 20GW of storage by 2030 to meet renewable targets, presenting significant untapped potential for institutional investors seeking exposure to essential, low-carbon infrastructure with stable returns and reduced volatility compared to traditional energy investments.
People mentioned:
- Mark Gilligan - Head of Infrastructure, AXA IM Alts
Companies mentioned:
- AXA IM Alts - Global alternative investment manager with €186bn assets under management
- Copenhagen Infrastructure Partners (CIP) - Developer of battery energy storage systems, including the Coalburn 1 project
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