CPS Energy Expands Battery Storage Capacity with 350 MW Agreement

CPS Energy, the largest municipally owned electric and natural gas utility in the United States, has taken a significant step towards bolstering its energy storage capacity. The company has entered into two storage capacity agreements (SCAs) with Eolian L.P., totaling 350 megawatts (MW) of battery energy storage. This new capacity adds to a previous 50 MW SCA signed with Eolian in 2023, as CPS Energy continues to execute its Vision 2027 generation plan.

The new projects, dubbed “Ferdinand” and “Padua 2,” will boast storage capacities of 200 MW and 150 MW respectively. Both projects are strategically located in South Bexar County, Texas, and are expected to come online in the first half of 2026.

These projects will not only contribute to the overall resilience of the power grid, but they will also provide significant benefits to CPS Energy’s customers. With the addition of these SCAs, CPS Energy’s total battery storage capacity under contract will reach 400 MW.

“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.”

The Ferdinand and Padua 2 projects are anticipated to significantly impact the energy landscape of the San Antonio area. Aaron Zubaty, CEO of Eolian, highlighted the project’s importance: “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.”

Eolian emphasized the strategic selection of project locations to reduce the burden on the transmission system and enhance overall market operations. “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,” said Zubaty.

The projects are designed to serve the energy needs of the San Antonio community for an extended period, with an estimated lifespan of 20 years. Furthermore, the project entities have committed to contributing at least $175,000 annually to CPS Energy sponsored activities and scholarships within the Greater San Antonio area for a five-year period, starting upon project completion. This demonstrates the commitment to community benefits beyond the energy sector.

These initiatives are a testament to CPS Energy’s commitment to its Vision 2027 plan, which aims to power the community into the future with a focus on sustainability, reliability, and affordability. The utility has been actively investing in a diverse range of energy resources, including natural gas, wind, and solar, to ensure a robust and resilient energy system. This latest addition to its battery storage capacity reinforces its commitment to a cleaner and more efficient energy future for San Antonio.

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