Texas-based energy developer OCI Energy LLC signed a memorandum of understanding with public utility CPS Energy and LG Energy Solution’s U.S. storage division, LG Energy Solution Vertech. The agreement concerns the Alamo City Battery Energy Storage System (Alamo City BESS), a 120 MW / 480 MWh infrastructure currently under development in Bexar County, Texas.
A strategic project for the ERCOT grid
The project is designed to support the Electric Reliability Council of Texas (ERCOT) grid, particularly during peak demand periods. It aligns with the state’s broader efforts to enhance energy storage capacity. Under the terms of the agreement, LG Energy Solution Vertech will supply lithium-ion battery systems along with software and energy management solutions.
OCI Energy will handle all aspects of project development, financing, construction, operation and maintenance. CPS Energy, the primary energy provider for San Antonio, is expected to sign a capacity purchase agreement with OCI Energy to leverage the storage services provided by the system.
A transpacific industrial partnership
The collaboration was formally announced during a ceremony held in Seoul, South Korea, where the parent companies of OCI Energy and LG Energy Solution are headquartered. The project is expected to reach commercial operation in 2027 following the execution of contractual agreements.
Sabah Bayatli, President of OCI Energy, stated that the partnership would “deliver critical energy infrastructure” to improve grid reliability and support local economic growth. Jaehong Park, President and CEO of LG Energy Solution Vertech, described the project as “a key milestone for stabilising the Texas grid.”
Rudy D. Garza, President and CEO of CPS Energy, highlighted the project’s role within the “Vision 2027” strategy to meet the region’s rapid growth in energy demand.
