OCI Energy Breaks Ground on 480 MWh Texas Battery Storage Project
OCI Energy, a U.S. subsidiary of OCI Holdings, has broken ground on the 120 MW / 480 MWh Alamo City Battery Energy Storage System (BESS) in southeastern Bexar County, Texas. The project is one of the largest standalone battery storage facilities currently under construction in the region.
The facility is designed to store electricity during periods of low demand and discharge it during peak hours, supporting grid stability across the Electric Reliability Council of Texas (ERCOT) system. With a four-hour discharge duration, the project targets long-duration storage needs that remain relatively underrepresented in Texas’s current battery fleet.
Once operational in 2027, the system will operate under a 20-year capacity agreement with CPS Energy, which will retain operational control of the facility. The project is expected to provide backup capacity for peak demand periods and help integrate higher shares of variable renewable generation.
The development also benefits from U.S. federal tax incentives for energy storage under recent policy changes, which allow qualifying projects to receive investment tax credits of up to 40% under specific conditions, including location-based and timing requirements.
Key equipment for the project will be supplied by LG Energy Solution through its U.S. subsidiary, while EPC services are being delivered by Elgin Power Solutions. ING Capital is providing construction financing, with Black & Veatch serving as technical advisor.
Texas is experiencing rapid growth in electricity demand, driven by data centre expansion, electrification, and industrial activity. ERCOT forecasts peak demand could rise from 87 GW in 2025 to as high as 138 GW by 2030, increasing the need for dispatchable capacity such as large-scale battery storage.
OCI Energy is also shifting its business model from project sales toward long-term ownership and operational revenue, with a development pipeline in North America totaling 7 GW of solar and storage projects, the majority located in Texas.
Source: techtimes.com
