Texas utility CPS teams with Eolian on 1.4 GWh of battery storage

CPS Energy, the largest municipally owned electric and natural gas utility in the United States, has inked a storage capacity agreement (SCA) with California-based Eolian LP, a portfolio company of Global Infrastructure Partners, for 350 MW of battery energy storage projects.

The San Antonio-based electric provider said in a statement that the new deal covers two battery energy storage projects, adding to a 50 MW SCA signed with Eolian in 2023.

The battery energy storage projects, called “Ferdinand” and “Padua 2,” have a power output of 200 MW and 150 MW respectively and a storage capacity of four hours. The two projects, located in southern Bexar County, are expected to go online within the first half of 2026. 

Having storage resources strategically located in CPS Energy’s service territory contributes to overall grid resiliency and benefits customers, the utility said.

The projects are expected to help serve the energy needs of the San Antonio community for a 20-year period. As part of a related community benefits agreement, the project entities will contribute at least $175,000 each year to CPS Energy sponsored activities and scholarships within the Greater San Antonio area for a five-year period once the projects are operational.

“Following on to the 50 MW Padua 1 project already under construction for CPS Energy, this additional 350 MW of  four-hour duration battery energy storage will provide new dispatchable capacity to the San Antonio area by mid-2026, representing the single largest buildout of standalone battery energy storage in ERCOT to date and proving that deployment of fast and flexible energy storage resources at critical grid locations can bridge the many years until new transmission can be constructed to further support load growth and alleviate systemwide congestion,” said Aaron Zubaty, CEO of Eolian.

According to Zubaty, the project locations were carefully chosen years ago to reduce the burden on the transmission system and enhance overall market operations by providing resiliency and reliability within load pockets and adjacent to retiring thermal generating units.

The move is part of CPS Energy’s efforts to grow its portfolio of new generation capacity under its Vision 2027 plan. Since the plan’s approval in January 2023, the utility has added 1,710 MW of natural gas generation, 500 MW of natural gas firming capacity, an additional 84 MW of wind capacity, has contracted 730 MW of solar energy as well as 50 MW of energy storage.  

CPS Energy launched a request for proposal for up to 500 MW of energy storage systems in September 2023.