The Scottish National Investment Bank is spending £50m to acquire a minority stake in the Devilla Battery Energy Storage System, at Kincardine, from Copenhagen Infrastructure Partners (CIP), alongside Nuclear Liabilities Fund (NLF) which also takes a minority stake.
The Fife-based project will be one of Europe’s largest battery energy storage systems (BESS). It will provide critical support for the UK’s electricity grid, enabling more use of Scotland’s renewable energy by storing excess energy during periods of low demand, then releasing it where and when it’s needed.
Once operational, the project will be among Europe’s largest battery storage facilities, supporting grid stability and the integration of renewable energy generation.
Devilla is a 500MW, two-hour-duration, lithium-ion battery energy storage system (BESS) located in Kincardine, Scotland. CIP, part of Copenhagen Infrastructure IV (CI IV), will retain the majority stake and will continue to lead the project delivery.
CIP is a global fund manager and leading investor in energy infrastructure.
The project has a high level of contracted revenues through a 10-year optimisation agreement with SSE plc, a leading generator of renewables and flexible power in Great Britain and Ireland, alongside a 15-year capacity market agreement, providing visibility and a stable foundation for returns while maintaining exposure to market upside.
Devilla is one of three transmission-connected BESS assets co-developed by Alcemi and CIP that are being constructed by CIP in Scotland. Collectively, the projects will have a total power capacity of 1.5GW and will be able to store and supply the grid with a total of 3GWh of electricity, enough to supply over 4.5 million households for two hours. CIP is developing a further 4.5GW of BESS projects across Scotland and England.
Nischal Agarwal, Partner at CIP, said: “As CIP’s development and construction portfolio of UK BESS projects continues to progress and grow, we look forward to welcoming the Scottish National Investment Bank and Nuclear Liabilities Fund as new equity partners on our Devilla site. Once commissioned in 2028, Devilla will be one of Europe’s biggest operational BESS projects. The delivery of Devilla, alongside CIP’s Coalburn 1 and 2 projects, will improve the UK’s energy security and reduce costs for British consumers through enhanced system flexibility and access to more low-cost renewables.”
Robin Tayal, Investment Director at the Scottish National Investment Bank, said: “Battery energy storage systems are a critical part of improving energy security and stability. The Devilla site is strategically located and will support renewable integration, grid stability, and system flexibility. We are pleased to partner with CIP and the wider investor group to support the delivery of this important asset.”
Melissa Hope, Chief Executive of Nuclear Liabilities Fund, added: “NLF is pleased to partner with CIP and the Bank on this battery storage project. This investment aligns with our strategic investment objectives while supporting UK energy security and economic growth.”
The Nuclear Liabilities Fund (NLF) is a ring-fenced fund to meet the costs of decommissioning eight nuclear power stations in the UK. To date circa £2.8bn of decommissioning payments have been made. The decommissioning programme is expected to continue into the next century, with NLF protecting both current and future generations from costs associated with generation of nuclear power.