OCI Energy, CPS Energy, And LG Vertech Comes Together To Develop Large-Scale Battery Storage Project In ERCOT Market

Texas-based OCI Energy LLC, CPS Energy, and LG Energy Solution Vertech, the U.S. energy storage subsidiary of LG Energy Solutions have entered into a strategic Memorandum of Understanding (MOU) to collaborate on the development of the Alamo City Battery Energy Storage System (Alamo City BESS) project. Signed on May 26, 2025, during a ceremony held in Seoul, South Korea, home to the parent companies of both OCI Energy and LG Energy Solution Vertech, the agreement marks a significant step toward strengthening Texas’ grid infrastructure and supporting the energy resilience goals of San Antonio.

The Alamo City BESS project is a 120 MW / 480 MWh battery energy storage initiative slated for development in Bexar County, Texas. Once operational, it will enhance the Electric Reliability Council of Texas (ERCOT) grid’s ability to meet peak electricity demand and improve grid stability, directly supporting San Antonio’s broader sustainability and energy security objectives. This project represents a meaningful addition to the state’s rapidly expanding energy storage capacity, underscoring the strategic importance of battery storage in managing renewable integration and grid reliability.

As outlined in the MOU, LG Energy Solution Vertech will supply the battery energy storage system and related energy management technologies to OCI Energy, which will lead project development. CPS Energy, San Antonio’s municipally owned utility, is expected to serve as the off-taker through a future energy storage capacity agreement with OCI Energy. This collaboration reinforces CPS Energy’s leadership in advancing sustainable energy solutions across Texas.

Sabah Bayatli, President of OCI Energy, mentioned, “This collaboration reflects our shared commitment to energy innovation and affordability. 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.”

Jaehong Park, President and CEO of LG Energy Solution Vertech, said in a statement, “We are proud to support San Antonio’s energy transition through this strategic collaboration. 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.”

Rudy D. Garza, President & CEO of CPS Energy, stated, “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.”

OCI Energy will oversee the full lifecycle of the project including development, financing, construction, operation, maintenance, and ownership. Pending final agreements and necessary approvals, the Alamo City BESS is expected to achieve commercial operation by 2027. This partnership reflects the increasing importance of global cooperation in advancing next-generation energy infrastructure. By combining technological expertise, local utility engagement, and private sector development capabilities, the Alamo City BESS initiative is poised to play a key role in supporting Texas’ transition to a cleaner, more resilient energy system.