CPS ENERGY SECURES 350 MW OF FUTURE BATTERY ENERGY STORAGE FOR GENERATION PORTFOLIO
This addition will bring the utility’s total battery energy storage to 400 MW under contract
August 28, 2024 (SAN ANTONIO) – CPS Energy, the largest municipally owned electric and natural gas utility in the United States, has entered into two storage capacity agreements (SCAs) with Eolian L.P. (Eolian) for a total of 350 megawatts (MW) of battery energy storage, adding to a 50 MW SCA signed with Eolian in 2023, as the utility continues the execution of its Vision 2027 generation plan.
The battery energy storage projects, called “Ferdinand” and “Padua 2”, have a storage capacity of 200 MW and 150 MW, respectively. Both projects are located in South Bexar County, Texas and will be newly constructed and expected to be online in the first half of 2026. Having storage resources strategically located in CPS Energy’s service territory contributes to overall grid resiliency and benefits customers.
Not including the 10 MW operational in the current portfolio, the signing of these SCAs brings CPS Energy’s total battery storage capacity under contract to 400 MW combined.
Dykema Gossett PLLC served as external legal advisor to CPS Energy in connection with the negotiation of the SCAs.
“I am proud of the work CPS Energy has done to secure another 350 MW of generation for our growing community,” said Rudy D. Garza, President & CEO of CPS Energy. “This is another step in executing on our Vision 2027 generation plan and we are excited about the benefits it will provide to our community through both reliability and economic development.”
“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,” added Aaron Zubaty, CEO of Eolian. “These project locations were carefully chosen years ago to actually 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 while reducing congestion on key transmission pathways.”