The municipally owned energy provider CPS Energy and OCI Energy, a major player in developing large-scale solar and energy storage projects, have announced a strategic agreement for an energy storage project. Named “Alamo City ESS LLC,” this 120-megawatt (MW) and 480-megawatt-hour (MWh) system will be located in Bexar County, Texas. Scheduled to go online by late 2026, the project addresses the growing energy needs of the San Antonio region.
The agreement, based on a Storage Capacity Agreement (SCA), assigns OCI Energy the responsibility for developing, financing, constructing, owning, and operating the system. CPS Energy will oversee its operational control to reliably meet local energy demand.
Strategic Investment Aligned with Vision 2027
The project is part of CPS Energy’s Vision 2027 strategy, which aims to increase energy capacity to accommodate San Antonio’s rapidly growing community. To date, CPS Energy’s total contracted battery storage capacity has reached 520 MW, further enhancing the sustainability and resilience of its grid.
In addition to meeting immediate energy demands, the system offers a four-hour discharge capability, enabling it to support the grid during peak demand periods. Rudy D. Garza, President and CEO of CPS Energy, emphasized the importance of this project to ensure stable energy supply and meet the future needs of the community.
A Commitment to Community and Education
OCI Energy also commits to supporting the community through a social contribution agreement. A total of $250,000 will be allocated to the University of Texas at San Antonio (UTSA) for educational initiatives. This partnership between OCI Energy and UTSA aims to strengthen local skills and prepare the workforce for opportunities in the energy sector.
Sabah Bayatli, President of OCI Energy, expressed enthusiasm for building on a decade of successful collaboration with CPS Energy, which has delivered multiple large-scale solar projects in Texas.
A Sustainable Energy Transition for San Antonio
This energy storage project represents a significant milestone in transitioning to cleaner, more sustainable energy sources. In January 2023, the CPS Energy Board of Trustees approved a generation plan to diversify its energy portfolio, including 1,710 MW of natural gas generation, an additional 84 MW of wind capacity, and 730 MW of contracted solar energy.
San Antonio Mayor Ron Nirenberg welcomed the initiative, highlighting that it strengthens the city’s position as a national leader in adopting renewable energy.
