CIP Expands Us Storage With Beehive Project

Copenhagen Infrastructure Partners (CIP) has made a strong move in its global clean energy plans by acquiring the Beehive Battery Energy Storage System (BESS) in Peoria, Arizona. The deal, made through its CI V fund, shows the Danish investment firm’s growing focus on large-scale storage projects as key to the energy transition.

The Beehive project is a 250-megawatt facility with a four-hour storage capacity, totaling 1,000 megawatt-hours. Currently under construction, it is expected to be up and running by early 2026. Once completed, it will be an important part of Arizona’s changing electricity system. With plenty of solar power and growing energy demand, Arizona is becoming a hotspot for large grid storage projects.

One of the project’s strengths is the long-term contract CIP secured with Arizona Public Service Company (APS), the state’s largest utility. APS serves about 1.4 million customers across most of Arizona. The 20-year contract guarantees steady revenue for CIP and gives APS a reliable tool to balance increasing renewable energy with demand peaks. This kind of long-term deal shows how battery storage is becoming a regular part of utility planning, moving beyond short trials to solid infrastructure investments.

The Beehive system is designed to store extra electricity produced during times of strong renewable output—especially solar—and release it when demand is high. This helps solve a key problem of clean energy: the ups and downs of renewable power. In Arizona, where summer power use peaks with high air conditioning and strong solar production, the project will help keep the grid stable and reliable.

The purchase is also a key step for EDF Power Solutions North America, the original developer of Beehive. This is EDF’s second standalone storage project in the U.S., adding to their portfolio of over 23 gigawatts of renewable and storage projects. EDF’s sale of the project reflects a growing trend where developers focus on early planning and permitting, while investors like CIP provide the financing to complete large projects.

For CIP, the Beehive deal reflects a larger global push. The CI V fund, which closed in March 2025, raised over $14 billion—well above its goal—and can invest about $27 billion worldwide. This fund focuses on renewable energy infrastructure, with battery storage as a key area. By investing in storage, CIP is adapting to the changing needs of modern power systems, where steady capacity and flexibility are as important as renewable generation.

This deal also comes as the U.S. speeds up its energy transition. Federal and state policies are encouraging rapid growth in renewable energy, which creates challenges for managing the grid. Large storage projects like Beehive are seen as essential for integrating more renewables while keeping the grid stable. Utilities, regulators, and investors are all changing how they work to support clean energy.

The project also highlights Arizona’s growing importance in the U.S. energy scene. Known for its solar power, the state’s grid has struggled to balance midday solar surpluses with evening demand spikes. Storage projects like Beehive will help smooth out these changes and get the most value from renewable energy. It also shows APS’s active role in making sure the energy supply meets growing demand in one of the fastest-growing states.

CIP’s focus on storage follows a wider industry trend. Global investors see energy storage as a fast-growing area with strong policy support and good long-term returns. Storage projects are no longer just experiments but key parts of the grid, often signed up with long-term contracts like traditional power plants. Utilities’ willingness to commit to 20-year deals shows storage is now a trusted, reliable technology.

Looking ahead, Beehive is expected to bring not only benefits to the power system but also economic gains like construction jobs and ongoing operations work. For Arizona residents, it will help keep power affordable and reliable amid rising demand and challenges like heatwaves caused by climate change. For CIP, this investment strengthens its presence in the U.S. and builds its reputation as a leader in clean energy infrastructure.

As early 2026 approaches, all eyes will be on Beehive as it moves from building to operation. Its success will mark more than just a new asset for CIP—it will be a clear step toward a future where energy storage is central to a stable, renewable electricity grid. In many ways, Beehive represents a new kind of energy infrastructure: cooperative, flexible, and focused on both cutting emissions and ensuring reliable power.