While the deployment of energy storage systems across the U.S. has grown dramatically in the U.S. in recent years, they are facing resistance in some communities where residents have voiced concerns over the risk of energy storage system fires and the amount of space required to install storage systems.
A recent fire at an energy storage facility in California is bringing renewed scrutiny on safety issues tied to the technology.
While community opposition doesn’t appear to have reached enough of a tipping point to dramatically slow down the overall growth trajectory of energy storage and renewable energy projects across the U.S., given the increasing number of communities that are raising objections to energy storage systems, it’s a trend worth taking note of.
The latest sign that the U.S. energy storage and renewable energy markets remain healthy is a recent report from the American Clean Power Association noting that the U.S. energy storage market continued its strong growth in Q3 of 2024, with the grid-scale segment setting a new Q3 record at 3,431 megawatts and 9,188 megawatt-hours deployed.
Energy storage projects are facing increasing scrutiny from local residents in parts of the U.S. Residents have voiced concerns about fires at energy storage facilities – in particular, lithium-ion storage facilities.
State utility regulators are taking action to tighten safety rules related to energy storage facilities.
California
In early September 2024 a fire broke out at a San Diego Gas & Electric (SDG&E) energy storage facility.
On September 5, at 12:09 p.m., a fire alarm was reported at an SDG&E battery storage facility in Escondido, SDG&E reported on Sept. 7. The Escondido Fire Department, Escondido Police Department, Public Works, and safety and environmental crews from SDG&E responded. A fire was confirmed, and the location of the fire was quickly identified in one of the 24 battery storage containers at the site.
The fire was contained to just one storage container. There were no injuries, SDG&E reported.
In January 2024, Solano County, Calif., enacted a two-year moratorium on the approval of front-of-the-meter battery energy storage systems “to allow planning staff time to develop land use standards that ensure public safety, health, and welfare,” the county notes on its website.
In October 2024, the City Council for Escondido, California, approved the adoption of an Interim Ordinance to prohibit new commercial battery energy storage systems (BESS) within the City of Escondido.
At the October 9 meeting, Escondido City Council Member Mike Morasco said that the action “is not a prohibition…it’s a pause because there are too many issues, there are too many concerns” related to storage systems.
Other communities in California have considered but ultimately decided against implementing energy storage moratoriums.
On Sept. 11, the San Diego County Board of Supervisors unanimously rejected a proposed moratorium on battery energy storage systems, which had been suggested as an option by county staff.
“This decision marks a significant victory for the energy storage industry, especially in the wake of recent incidents in San Diego County and growing support for a moratorium. The outcome demonstrates that early efforts to educate staff and decision-makers can effectively counter public opposition driven by fear and misinformation,” said the California Energy Storage Alliance in a news release.
Instead of approving the moratorium, the Board implemented minor additions to the current permitting process. Specifically, projects seeking permits must:
- Continue submitting technical studies prepared by a fire protection engineer detailing the proposed fire safety features of the design, operation, and use of the BESS;
- Include these studies in project applicant packages for all discretionary BESS facilities;
- Ensure that the studies account for setback requirements from residential properties; and
- Accept and incorporate the recommendations provided in these technical studies for all facilities.
Additionally, the Board directed county staff to have the County Fire Chief "analyze appropriate residential buffer distances based on plume modeling..." and report back within 45 days, with a plan to be presented at the December 11 meeting.
Moss Landing Fire
A fire broke out on Jan. 16 at the Moss Landing Energy Storage Facility in Morro Bay, Calif., prompting local officials to implement an evacuation of nearby residents.
In 2023, Vistra completed the 350-megawatt/1,400-megawatt-hour Phase III expansion of its Moss Landing Energy Storage Facility, bringing its total capacity to 750 MW/3,000 MWh.
Vistra’s lithium-ion battery system is co-located on the site of its existing Moss Landing Power Plant in Monterey County, a site that’s been providing electricity to Californians since 1950.
In late January 2025, the California Public Utilities Commission unveiled action to enhance the safety of battery energy storage facilities and their related emergency response plans.
The PUC issued a proposal that, if approved, would, among other things:
- Implement Senate Bill (SB) 1383 to establish new standards for the maintenance and operation of battery energy storage facilities, and
- Increase oversight over emergency response action plans for battery energy storage facilities.
“If approved, the proposal will enhance the safety of battery energy storage facilities, which play a crucial role in California’s transition away from fossil fuels,” it said.
The proposal modifies General Order 167, which currently provides a method to implement and enforce maintenance and operation standards for electric generating facilities.
The proposal adds new safety standards specifically for the maintenance and operation of battery energy storage systems, as required by SB 1383.
The proposal also makes explicit that the CPUC requires battery storage facility owners to develop emergency response and emergency action plans, as required by SB 38.
In addition, the proposal makes other technical updates to the standards to improve safety, reliability, and effectiveness of operation and maintenance activities, such as establishing technical logbook standards for battery storage systems, and expanding requirements for emergency plans that relate to all electric generating facilities.
The proposal will be on the CPUC’s March 13, 2025 Voting Meeting agenda.
CPUC Staff Investigation of Vistra Battery Energy Storage Facility
Meanwhile, the CPUC has initiated its investigation of Vistra’s battery energy storage facility in Moss Landing as a result of a fire at the facility on January 16.
The CPUC’s Safety and Enforcement Division promptly began its investigation, requesting information and updates and maintaining communication with Vistra. On January 22, SED staff conducted an initial site visit as a part of its ongoing investigation.
California’s current installed battery storage capacity is over 20 percent of California’s peak demand. The state’s projected need for battery storage capacity is estimated at 52,000 MW by 2045.
Meanwhile, California Assemblymember Dawn Addis in January introduced the Battery Energy Safety & Accountability Act (AB 303) to improve safety standards and restore local oversight for energy storage facilities in California.
AB 303 would “require critical local engagement in the permitting process for battery or energy storage facilities, and create environmental setback requirements for sensitive areas, including schools, hospitals, and natural habitats,” a news release from Addis said.
New York State
New York State has seen a number of communities enact moratoriums on energy storage projects.
For example, Town of Oyster Bay, N.Y., Supervisor Joseph Saladino and the Town Board in late October extended by an additional six months the construction moratorium on BESS in the Town of Oyster Bay. The moratorium was first approved in April 2024.
“While battery energy storage systems can help us make a greener earth, they pose potential safety risks for the community,” said Saladino. “Multiple fires at these facilities in New York State have highlighted the dangers and raised concerns over public safety and the risk to our first responders.”
In February, New York Gov. Kathy Hochul released initial recommendations from and Inter-Agency Fire Safety Working Group, outlining enhanced safety standards for battery energy storage systems.
The draft recommendations include potential updates to the Fire Code of New York State as well as a list of additional opportunities for defining and implementing best practices. If adopted, the changes would codify enhanced safety standards and continue to position New York as a national leader in responsible and reliable battery energy storage development.
The announcement followed the release of initial data that found that there were no reported injuries and no harmful levels of toxins detected following fires at battery energy storages systems in Jefferson, Orange and Suffolk Counties last summer.
In July 2024, Hochul announced that New York State will receive U.S. Department of Energy funding for a long-duration energy storage demonstration project that will use fire-safe battery technology.
The project will be developed by the New York Power Authority, Rockland County-based Urban Electric Power and the Electric Power Research Institute with an installation at Westchester County’s Grasslands Reservation in Valhalla and another at the State University of New York’s Oneonta campus.
Also in July, Hochul announced updates to the New York Fire Code that include draft code language to address the recommendations from the Governor’s Interagency Fire Safety Working Group. The draft code language includes updates and additions to improve coordination, safety and emergency preparedness in the planning of energy storage projects.
Concerns About Energy Storage Facilities Raised in Other Communities
Concerns about the safety of energy storage facilities is not limited to California and New York State.
For example, at an October 14, 2024, meeting of the City Council of Katy, Texas, the council rejected a special use permit for a proposed energy storage facility in the city. According to an article in Community Impact, residents at the meeting said they were concerned about the project’s proximity to schools and homes and potential safety risks, among other things.
Energy storage projects have also faced opposition in other states beyond California, New York and Texas including Indiana, Washington State and Massachusetts.
Other Storage Technologies Offer Increased Safety Characteristics
Other storage technologies offer some assurances as it relates to safety concerns.
For example, ESS Tech, which manufactures energy storage facilities based on iron flow technology, lists the following characteristics of the technology:
- Environmentally safe, non-toxic electrolyte
- Non-flammable, non-explosive
- No hazardous materials: no risk to personnel, no hazmat compliance plan required
- Ships in dry state and hydrated on site
Public power utilities are adopting the iron flow battery technology.
ESS and California public power utility Burbank Water and Power in 2024 celebrated the commissioning of BWP’s first long duration energy storage system.
“This project represents a major step toward achieving our goal of 100% carbon free power by 2040,” said Mandip Samra, General Manager of BWP. “The Energy Warehouse™ battery will enable our team to gain experience with iron flow long-duration energy storage technology which will be a linchpin of the renewable grid of the future.”
Also in 2024, California public power utility SMUD’s long-duration battery storage project in partnership with ESS Tech, Inc. was awarded a $10 million grant from the California Energy Commission to demonstrate a 3.6-megawatt, 8-hour iron flow battery project.
