OCI Energy, CPS Energy Break Ground on San Antonio Battery Storage Project

OCI Energy and CPS Energy officially broke ground on the Alamo City Battery Energy Storage System (BESS) in southeastern Bexar County, marking the start of construction on one of the region's largest standalone battery storage projects.

The 120 MW/480 MWh facility is designed to improve grid reliability and support the San Antonio area during periods of peak electricity demand. Once operational, the project is expected to provide enough stored electricity to power approximately 30,000 homes for up to four hours.

"This project represents a significant step forward toward realizing a more resilient, reliable energy system that San Antonians can be truly proud of," said Sabah Bayatli, president of OCI Energy. "Once completed, it will help the electric system better manage peak demand events."

OCI Energy developed and financed the project and will retain ownership through a long-term storage capacity agreement with CPS Energy, which will operate the facility when needed to support the region's electric grid.

"Energy storage is a critical component of how we prepare for the future," said Rudy D. Garza, president and CEO of CPS Energy. "Projects like Alamo City BESS give us the flexibility to meet growing demand, integrate more diverse energy resources, and ensure our community has reliable power when it matters most."

Several major energy-sector organizations are participating in the project. ING is providing construction financing, LG Energy Solution Vertech will supply the battery storage technology, and Elgin Power Solutions is serving as the engineering, procurement, and construction contractor.

Project leaders described the development as a significant infrastructure investment intended to strengthen grid flexibility and energy resilience in Texas during periods of high electricity demand.

The groundbreaking of the Alamo City Battery Energy Storage System highlights Texas's growing investment in large-scale energy storage technology as utilities and developers work to improve grid reliability, manage peak demand, and support the state's expanding energy needs.