OCI Energy, CPS Energy, and LG Energy Solution Vertech Partner to Develop Major ERCOT Battery Storage Project
Texas-based OCI Energy LLC (OCI Energy) and CPS Energy, along with LG Energy Solutions' U.S. energy storage division, LG Energy Solution Vertech, signed a Memorandum of Understanding (MOU) on May 26, 2025, to memorialize their collaboration regarding the Alamo City Battery Energy Storage System (Alamo City BESS) project. The joint effort, formalized during a ceremony in Seoul, South Korea, where the parent companies of OCI Energy and LG Energy Solution Vertech are headquartered, represents a significant advancement in grid strengthening infrastructure that will enhance energy security and reliability for residents and businesses in San Antonio, Texas.
Alamo City BESS is a 120 MW / 480 MWh battery energy storage project currently under development in Bexar County, Texas that will help power the ERCOT grid during peak demand periods and further San Antonio's goals of energy sustainability and resilience. The project would represent a significant addition to Texas' overall growing battery energy storage capacity.
Under the MOU, LG Energy Solution Vertech would provide the battery energy storage system and energy management technology to OCI Energy, the project developer. CPS Energy, as the off-taker, would commit to purchase energy storage capacity via an agreement to be negotiated with OCI Energy. This would further cement CPS Energy's role as a leader in the sustainable energy integration of Texas. OCI Energy would be responsible for the development, financing, construction, operation, maintenance and ownership of the project.
"This collaboration reflects our shared commitment to energy innovation and affordability," said Sabah Bayatli, President of OCI Energy. "The Alamo City BESS project demonstrates the strength of international partnerships in delivering critical energy infrastructure that will provide CPS Energy customers with greater energy security. We are proud to work alongside CPS Energy and LG Energy Solution Vertech to realize this vision for a stronger, safer grid that provides more affordable power, while supporting local economic development."
"We are proud to support San Antonio's energy transition through this strategic collaboration," said Jaehong Park, President and CEO of LG Energy Solution Vertech. "This project integrates our advanced lithium-ion batteries with comprehensive solutions—including system integration, control software, and long-term services. The deployment of our BESS marks a key milestone in stabilizing the Texas power grid, and we remain committed to advancing grid reliability as we expand our efforts across Texas."
"Our community is growing at an exponential rate, and we have been focused on our Vision 2027 strategy to meet this growth," said Rudy D. Garza, President & CEO of CPS Energy. "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."
Upon execution of the relevant agreements, the project is expected to reach commercial operation in 2027.
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