#United States #Renewable Energy #San Antonio #CPS Energy #OCI Energy

CPS Energy and OCI Energy Collaborate on Major Battery Storage Project

CPS Energy, recognized as the largest municipally owned electric and natural gas utility in the United States, has partnered with OCI Energy, a prominent developer and operator of utility-scale solar and battery projects, to introduce a significant energy initiative. This collaboration marks the establishment of a 120 MW / 480 MWh battery energy storage system known as the Alamo City ESS LLC, strategically located in southeastern Bexar County, Texas.

The agreement, termed a long-term storage capacity agreement (SCA), stipulates that OCI Energy will oversee the development, financing, construction, ownership, and operation of the project, while CPS Energy will maintain operational control. This endeavor is aimed at bolstering the electrical demands of the San Antonio community, ensuring a reliable energy supply for years to come.

Community Engagement and Development

In conjunction with this project, OCI Energy has committed to enhancing local educational initiatives through a $250,000 contribution to the University of Texas at San Antonio (UTSA). This funding is intended to establish educational programs that will align with the renewable energy objectives of the partnership, further embedding community engagement and development into their operational framework.

The battery storage system is designed to operate for a four-hour duration, meaning it can discharge its full energy capacity for this period before requiring a recharge. The project is set to commence operations in late 2026, serving the energy requirements of San Antonio for a robust 20-year timeframe. With the addition of this battery storage initiative, CPS Energy’s total contracted battery storage capacity will rise to 520 MW, marking a significant step in meeting the growing energy needs of the region.

Vision 2027 Strategy

Rudy D. Garza, President and CEO of CPS Energy, emphasized the importance of this project in addressing the community’s rapid growth: "Our community is growing at an exponential rate, and we have been focused on our Vision 2027 strategy to meet this growth. I'm proud of our team for delivering on our commitment to increase energy capacity for our growing community. Every megawatt that we can provide our customers counts."

Partnering for a Sustainable Future

Sabah Bayatli, President of OCI Energy, expressed excitement about the project's potential: "As a San Antonio-based company, we are thrilled to build on our successful, and more than a decade-long collaboration with CPS Energy. Together, we've delivered multiple utility-scale solar projects to Texas's power grid, paving the way for renewable energy in San Antonio and across Texas. Now, we're embarking on an exciting new chapter—introducing large-scale battery energy storage to San Antonio to help secure reliable and sustainable power for our community today and for generations to come."

San Antonio's Mayor, Ron Nirenberg, highlighted the project's importance in the context of the city’s energy strategy, stating, "This agreement is another important step toward a future focused on reliability, sustainability, and clean energy. This battery storage project continues the productive relationship between CPS Energy and OCI Energy that has helped our community become a national leader in the renewable solar power industry and prepared for the energy landscape of the future."

Continued Growth in Renewable Energy Capacity

As per their Vision 2027 plan, authorized by the CPS Energy Board of Trustees in January 2023, the utility service has already enhanced its generation capabilities significantly. The addition of 1,710 MW of natural gas generation, 500 MW of natural gas firming capacity, 84 MW of wind capacity, and 730 MW of solar energy highlights their commitment to diversifying energy sources and embedding sustainability within their operational objectives.

The successful initiative signifies a strategic move towards creating a cleaner, more sustainable energy future for the residents of San Antonio, who stand to benefit from these advancements. An inclusive approach that engages local institutions like UTSA further solidifies the commitment to community-oriented projects that promote education and environmental awareness.

Conclusion

In conclusion, the development of the Alamo City ESS LLC battery storage project represents a significant advancement in San Antonio's renewable energy landscape, reinforcing the importance of innovative energy solutions in addressing both community growth and environmental responsibility. As CPS Energy and OCI Energy pave the way for lasting contributions to the power grid, their initiatives highlight a promising future for sustainable energy in Texas.