⚡ Texas Utility CPS Energy Partners with OCI Energy for 120MW/480MWh BESS Project
CPS Energy, the largest municipally owned utility in the U.S., has entered a long-term storage capacity agreement (SCA) with OCI Energy for the development of a 120MW/480MWh battery energy storage system (BESS) named Alamo City ESS LLC. This project, located in Bexar County, Texas, is expected to be operational by late 2026. OCI Energy will develop, own, and operate the system, while CPS Energy will manage its operations to supply electricity to the San Antonio region. The 4-hour BESS is notable for its longer duration compared to other systems in the ERCOT region, where short-duration projects dominate. Tolling agreements like this one, offering long-term revenue stability, are gaining traction in ERCOT as battery storage revenues face challenges due to market volatility. This follows CPS Energy's recent partnerships for two additional 4-hour BESS projects totaling 350MW and reflects the utility's push for energy storage solutions under the Inflation Reduction Act's Investment Tax Credit (ITC) incentives. The Alamo City ESS marks a significant step in bolstering Texas’s grid reliability and advancing clean energy integration.