OCI Energy and CPS Energy Break Ground on 480-MWh Battery Storage Project in Bexar County
According to Solar Power World, OCI Energy and CPS Energy have officially broken ground on the Alamo City BESS, a 120-MW/480-MWh battery energy storage system located in Bexar County, Texas. The project is expected to come online in 2027 and will serve the San Antonio region under a long-term storage capacity agreement between the two companies.
Background
As reported by Solar Power World, OCI Energy developed and financed the Alamo City BESS and will retain ownership of the facility. CPS Energy, the San Antonio public utility, will hold operational control and dispatch the system to meet regional demand when needed.
LG Energy Solution Vertech is supplying the battery technology, ING is providing construction financing, and Elgin Power Solutions is serving as the EPC contractor, handling engineering, procurement, and construction.
“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. “This groundbreaking reflects years of thoughtful coordination, planning, and hard work, and once completed, it will help the electric system better manage peak demand events.”
Rudy D. Garza, President and CEO of CPS Energy, added: “Energy storage is a critical component of how we prepare for the future. 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.”
Analysis
The Alamo City BESS project reflects a broader shift in how Texas utilities are approaching grid reliability. The Electric Reliability Council of Texas (ERCOT) has faced well-documented pressure during extreme weather and peak demand events, and large-scale battery storage is increasingly viewed as a practical tool to absorb that risk at the utility level.
What makes this project’s structure notable is the ownership and control split. OCI Energy retains ownership while CPS Energy holds operational control, a model that lets a public utility access storage capacity without carrying the full capital burden on its own balance sheet. That arrangement, backed by a long-term capacity agreement, is becoming a more common template for utility-scale storage in deregulated or hybrid markets.
At 480 MWh, Alamo City BESS is a substantial system. Paired with LG Energy Solution Vertech’s battery technology and a dedicated EPC contractor in Elgin Power Solutions, the project has a defined supply chain and construction structure, which matters for schedule certainty. A 2027 target gives the team roughly a year to complete construction, a realistic but not leisurely timeline for a project of this scale.
Texas continues to attract large battery storage investment, and Bexar County’s position in the ERCOT grid makes it a logical location for a dispatchable storage asset that can respond to peak demand events across the San Antonio service territory.
What It Means for Subcontractors
- EPC work is awarded, but trade packages are still in play. Elgin Power Solutions holds the EPC contract, which means civil, electrical, and commissioning subcontracts are likely being scoped or awarded now. Firms with utility-scale storage or solar-adjacent experience in South Texas should be positioning for those opportunities.
- Bexar County is an active market. This project adds to the pipeline of large energy infrastructure work in the San Antonio area. Subcontractors building local relationships and bonding capacity for utility-scale projects will have more opportunities as this market grows.
- Know the timeline. A 2027 in-service date means construction activity will ramp through late 2026 and into 2027. Subcontractors planning labor and equipment availability should account for that window.
- Battery storage work requires specialized crews. BESS installation involves high-voltage DC systems, battery module handling, and integration with utility SCADA systems. Electrical subcontractors without prior storage project experience should consider pursuing training or teaming agreements with firms that have it before pursuing work on projects like this one.
