CPS Energy, OCI Team Up for Texas Battery Project

• CPS Energy teams up with OCI Energy to power San Antonio's future with a groundbreaking 120-MW battery system, boosting sustainability and reliability by 2026!

CPS Energy, serving the San Antonio area, has partnered with OCI Energy to develop a 120-MW/480-MWh battery energy storage system in Texas. OCI will handle the project’s development, financing, and ownership, while CPS Energy will maintain operational control to meet local electrical demand. The initiative will be carried out under a long-term storage capacity agreement, with the facility named Alamo City ESS LLC, located in southeastern Bexar County.

The battery storage system will provide four hours of energy capacity for 20 years and is set for commissioning by late 2026. This project will enhance CPS Energy's battery storage to a total of 520 MW, supporting the utility's Vision 2027 strategy to replace 2,249 MW of aging generation capacity before 2030, after recently adding 1,710 MW of natural gas, 84 MW of wind, and contracting 730 MW of solar energy.

How does CPS Energy's partnership with OCI Energy enhance Texas's renewable energy strategy?

• Strategic Alignment with Texas Renewable Goals

The partnership between CPS Energy and OCI Energy is a significant move towards meeting Texas's aggressive renewable energy targets, enhancing the state’s commitment to clean energy development by leveraging energy storage as a crucial component.

• Integration of Energy Storage in Renewable Mix

The addition of the 120-MW/480-MWh battery energy storage system will complement the existing renewable energy sources, providing a reliable means to store excess energy generated from wind and solar, especially during peak production times.

• Enhanced Grid Stability and Reliability

By incorporating advanced battery storage, this project will bolster grid stability in a region heavily reliant on intermittent renewable sources, reducing the risk of outages and ensuring a reliable energy supply for consumers.

• Scalability and Future Expansion

The successful implementation of this storage facility can serve as a model for future projects, potentially prompting similar initiatives across Texas and further expanding the state’s energy storage capacity to support additional renewable sources.

• Economic Opportunities

The partnership is expected to create jobs during the construction and operational phases, stimulating the local economy in Bexar County, and promoting the growth of a skilled workforce specializing in renewable energy technologies.

• Long-Term Environmental Benefits

By replacing aging fossil-fuel generation with advanced storage solutions like Alamo City ESS LLC, the initiative supports efforts to reduce greenhouse gas emissions, contributing to cleaner air and a healthier environment for residents.

• Support for CPS Energy's Vision 2027

The project directly supports CPS Energy’s Vision 2027 plan by contributing to the goal of replacing outdated energy generation infrastructure with modern, renewable-based technologies, aiming for a sustainable power grid by 2030.

• Collaboration Between Public and Private Entities

This partnership exemplifies a collaborative approach between public utilities and private enterprises (OCI Energy), showcasing a model for future projects that bridge gaps in funding, technology, and operational capabilities.

• CPS Energy's Operational Control

Maintaining operational control allows CPS Energy to tailor the storage system's capabilities to meet local energy demands effectively, ensuring that stored energy is available when it is needed most, thus directly benefiting the community it serves.

• Community Engagement and Awareness

The initiative will likely foster greater community awareness regarding energy storage and renewable energy, encouraging residents to embrace sustainable practices and participate in local energy initiatives.