OCI Energy and CPS Energy have officially broken ground on the Alamo City Battery Energy Storage System(BESS) in southeastern Bexar County, Texas.
The project marks a major investment in energy storage infrastructure for the San Antonio region. It is one of the largest standalone battery storage projects currently under development in the area.
The Alamo City BESS project will have a capacity of 120 megawatts and 480 megawatt-hours. Once operational, the facility will supply enough stored electricity to power around 30,000 homes for up to four hours. The system is designed to support the electric grid during periods of high demand and heavy energy use.
Battery energy storage systems store electricity when supply is high and release it when demand rises. This helps utilities balance the grid more efficiently and reduce pressure during peak hours. Energy storage is becoming important as power demand grows across Texas and renewable energy use expands.
OCI Energy developed and financed the project and will continue to own the facility after completion. CPS Energy will control and operate the system under a long-term storage capacity agreement. The partnership is focused on improving energy reliability for homes and businesses in the San Antonio area.
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Sabah Bayatli, President of OCI Energy, said the project reflects years of planning and coordination between different teams and partners. He stated that the facility will help manage peak demand events more effectively once it enters service. Bayatli also said the project represents progress toward a stronger, more reliable power system for the local community.
Rudy D. Garza, President and CEO of CPS Energy, described energy storage as an important part of future grid planning. He explained that projects like Alamo City BESS give utilities greater flexibility to meet growing electricity demand. Garza added that the facility will also support the integration of a wider range of energy resources into the grid.
Major Companies Support Alamo City BESS Development
Several major organizations are supporting different parts of the project’s development and construction. ING is providing construction financing for the battery storage facility. LG Energy Solution Vertech is supplying the battery technology used in the project.
Elgin Power Solutions has been selected as the Engineering, Procurement, and Construction contractor for the development. The company will oversee construction activities and help deliver the project on schedule. These partnerships bring together financial, technical, and engineering expertise from across the energy sector.
Sven Wellock, Head of Renewables and Power for the Americas at ING, said battery storage is playing a larger role in improving grid reliability. He noted that energy storage systems help utilities better manage periods of high electricity demand. Wellock added that the Alamo City project combines scale, flexibility, and long-term value for the local community.
Jaehong Park, CEO and President of LG Energy Solution Vertech, said the project will strengthen grid stability in the region. He explained that battery storage systems can help reduce demand pressure while improving electricity availability. Park also highlighted the growing role of storage technology in modern power systems.
Austin Hall, President of Elgin Power Solutions, said the project represents an important investment in future energy infrastructure. He stated that reliable, flexible grid systems are becoming increasingly important as electricity demand continues to rise. Hall added that the facility is expected to support the San Antonio region for many years after completion.
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Why Battery Storage Projects Matter
Texas has experienced rapid growth in electricity demand in recent years, driven by population growth, business expansion, and extreme weather. Battery storage projects are becoming a key part of the state’s strategy to strengthen grid reliability. These systems can quickly deliver stored electricity during emergencies or periods of high consumption.
Unlike traditional power plants, battery storage facilities do not generate electricity directly. Instead, they store energy from the grid and release it when needed most. This makes them valuable for balancing supply and demand, especially during hot summer months when electricity use rises sharply.
The Alamo City BESS project also reflects broader changes taking place across the global energy industry. Utilities and private developers are investing more heavily in storage technology to support cleaner and more flexible energy systems. Large battery facilities are now being built alongside solar and wind projects in many regions worldwide.
Construction of the Alamo City Battery Energy Storage System is now underway, with commercial operations expected to begin in 2027. Once completed, the facility will provide additional grid support and improve energy resilience across the San Antonio region. The project also highlights how battery storage is becoming a central part of future power infrastructure in Texas and beyond.
