On August 18, 2025, Copenhagen Infrastructure Partners (CIP) made a major move in the U.S. energy sector, acquiring the Beehive battery energy storage system (BESS) in Peoria, Arizona, from EDF Power Solutions North America. This 1 gigawatt-hour (GWh) project—equivalent to 250 megawatts (MW) of four-hour duration storage—marks a significant expansion for CIP’s fifth flagship fund, CI V, and signals a broader shift in how the Southwest is preparing for its energy future.
Located just outside Phoenix, the Beehive project is no small feat. Construction began earlier in 2025 under EDF Power Solutions, and now, with CIP taking the reins, the final phases are set in motion. The target for commercial operation is the first half of 2026, a timeline that reflects both the urgency and the complexity of modern energy infrastructure. As reported by ESS News and Power Technology, this transition of ownership is more than a handover—it’s a statement about the region’s energy ambitions and the evolving role of battery storage.
What makes Beehive particularly notable is its 20-year tolling agreement with Arizona Public Service Company (APS), the state’s largest energy provider. APS serves 1.4 million homes and businesses across 11 counties, making it a linchpin in Arizona’s energy landscape. The agreement ensures that the BESS will support APS’s growing capacity needs, charging during periods of high renewable generation and discharging when demand peaks. As the Southwest’s electricity demand continues to surge, this kind of flexibility is becoming essential.
According to Tim Evans, partner and head of North America at CIP, the stakes couldn’t be higher. “With electricity demand rapidly increasing in the Southwest, we anticipate battery storage will play a critical role in powering innovation and economic growth,” Evans said. He emphasized that Beehive would provide reliable energy and grid services to Arizona customers, and that the project builds on CIP’s established record of developing, constructing, and operating energy infrastructure investments nationwide. “We are pleased to have worked with the EDF Power Solutions team,” Evans added, underscoring the collaborative approach that brought Beehive to this stage.
For EDF Power Solutions North America, the Beehive project represents a milestone as well. It’s their second stand-alone energy storage project, a clear signal of their commitment to BESS technology and renewable energy. Ryan Pfaff, executive vice-president for grid and distribution-scale power at EDF Power Solutions, highlighted the company’s strategy: “EDF Power Solutions actively seeks partnerships across all stages of a project’s lifecycle, with an eye toward both optimising our portfolio and maximising value creation.” This approach has allowed EDF to remain nimble in a rapidly changing market, while still focusing on long-term value and sustainability.
The Beehive BESS is engineered to operate as a kind of energy sponge for the grid. During times when solar and wind generation are high—think sunny afternoons or blustery nights—the system absorbs excess electricity, storing it in massive lithium-ion batteries. Then, when the Arizona sun sets and air conditioners kick into high gear, Beehive releases that stored energy back into the grid. This not only helps APS meet peak demand but also reduces strain on traditional power plants, smoothing out the bumps in supply and demand that have long challenged utilities in the Southwest.
It’s not just about technology, though. The financial side of the deal is equally impressive. CIP’s CI V fund, which is backing Beehive, reached its final close in March 2025. According to Power Technology, more than $14 billion has been committed to energy infrastructure investments across North America, Europe, and Asia Pacific. In fact, the fund’s energy transition fundraising exceeded its €12 billion ($13.05 billion) target, a testament to investor confidence in both the sector and CIP’s management.
Why Arizona? The state has become something of a proving ground for large-scale energy storage, thanks to its abundant sunshine, expanding population, and ambitious renewable energy goals. Peoria, situated close to Phoenix, is at the heart of this transformation. As utilities like APS grapple with rising demand and the intermittent nature of renewables, projects like Beehive are increasingly seen as essential—not just as backup, but as a core part of the grid’s everyday operation.
The 20-year tolling agreement with APS is particularly significant. In energy markets, such long-term contracts are designed to provide stability for both the project developer and the utility. For APS, it means they can count on Beehive’s capacity for decades, making it easier to plan for the future and integrate more renewable energy. For CIP, it ensures a predictable revenue stream, which is vital for attracting institutional investors and justifying the hefty upfront costs of building such systems.
Of course, the road ahead isn’t without challenges. Battery storage projects face regulatory hurdles, supply chain constraints, and the ever-present risk of technological obsolescence. But Beehive’s scale, location, and partnership structure suggest it’s well-positioned to weather those storms. The fact that construction began in early 2025 and is now being shepherded to completion by a fund with deep pockets and a global reach only adds to its prospects.
For EDF Power Solutions, the sale of Beehive doesn’t mean an exit from the U.S. storage market—it’s more of a pivot. By focusing on partnerships and value creation at every stage, EDF is betting that its expertise will remain in demand as more utilities and investors look to replicate the Beehive model elsewhere. As Pfaff put it, the company is “actively seeking partnerships across all stages of a project’s lifecycle,” a strategy that could pay dividends as the market matures.
Meanwhile, for Arizona’s energy consumers, the benefits are likely to be tangible. More reliable power during heatwaves, a cleaner grid as renewables gain ground, and perhaps even some relief from volatile electricity prices. As the state’s energy mix evolves, Beehive stands as a symbol of what’s possible when public and private sectors align behind a common goal.
In the end, CIP’s acquisition of the Beehive BESS is more than just a business transaction—it’s a glimpse into the future of energy in the American Southwest. With billions committed, partnerships forged, and a 20-year promise to keep, the project is poised to play a pivotal role in Arizona’s transition to a more resilient, sustainable grid.
