Rising electricity demand in Texas is increasing the need for grid flexibility, with OCI Energy’s $130 million tax equity financing for the Alamo City Battery Energy Storage System highlighting the growing importance of large scale battery storage.
The financing, structured as a tax equity investment with clean energy investment firm Greenprint Capital, supports development of the 120 MW / 480 MWh battery storage project in Bexar County, Texas. The project is being developed under a long term Storage Capacity Agreement with CPS Energy, the largest municipally owned electric and natural gas utility in the United States.
The investment represents a key step in completing the project’s capital structure after construction financing was secured in 2025. The project has also moved into the construction phase following its recent groundbreaking, with commercial operation expected in 2027.
The Alamo City BESS is designed around a four hour duration model, allowing it to store and deliver electricity over a longer period compared with many shorter duration battery systems currently deployed. With a capacity of 480 MWh, the facility is expected to provide enough stored energy to supply approximately 30,000 homes for up to four hours during peak demand periods.
This duration capability is increasingly important in markets such as the Electric Reliability Council of Texas (ERCOT), where rapid load growth, extreme weather events, and renewable generation variability have created a stronger need for flexible grid resources. While batteries have traditionally been used for short term frequency regulation and peak shifting, longer duration systems are becoming more relevant as electricity demand patterns become more complex.
The project also reflects changes in how battery storage developments are being financed. Tax equity has historically played a major role in renewable energy investment structures, particularly for solar projects. The expansion of technology neutral clean energy tax credits has created new opportunities for standalone energy storage projects to access similar financing mechanisms.
Greenprint Capital’s investment represents one of its first transactions structured around the technology neutral Clean Electricity Investment Credit. This shift is significant because it allows energy storage developers to attract capital without relying exclusively on traditional renewable generation assets paired with batteries.
However, financing remains only one component of scaling storage deployment. Battery projects continue to face challenges related to supply chains, technology selection, interconnection delays, and long term revenue certainty. Unlike conventional power plants with established operating models, storage projects often rely on multiple revenue streams, including capacity contracts, energy arbitrage, and grid services.
The Alamo City project has reduced some market risk through its long term agreement with CPS Energy, providing a clearer framework for revenue stability. Such contracts are becoming increasingly important as developers seek financing for large battery assets where future electricity market conditions remain uncertain.
The project is supported by several industry partners, including ING Group, which provided construction financing, LG Energy Solution through its Vertech division as the battery technology provider, and Elgin Power Solutions as engineering, procurement, and construction contractor.
