Energy-Storage.news reported in September 2025 that OCI had closed construction financing for the project with Dutch multinational bank ING underwriting the package, which included a construction-to-term loan, a tax equity bridge loan, and letters of credit.
OCI entered into the 20-year SCA with CPS in 2024. When it was announced, the project was expected to enter commercial operation in the first half of 2026, OCI then updated that timeframe to Q3 2027. With its construction announcement, OCI notes the project is expected to enter commercial operation “in 2027.”
In May 2025, OCI Energy president, Sabah Bayatli, discussed with ESN Premium, the Alamo City’s 4-hour duration, which is not typically seen in the Electric Reliability Council of Texas (ERCOT) market, a region that often favours 1 to 2-hour duration projects.
“The end-user for long-duration energy storage (LDES) more generally is utilities. They need to balance their own load and they think about that on a long-term basis. I think CPS will eventually use this project to balance its load.”
He continued, “A merchant project would typically not do 4-hours as they do their modelling on price spreads and their financial model will see a 1-2 hour system as optimal. They make their decision based on economics, while utilities have a more long-term view.”
