Clean Energy Storage Proposal halted for historic Morro Bay power plant
MORRO BAY, Calif. – A California lawmaker is calling for an end to the Morro Bay battery energy project following a fire at a lithium battery storage facility in Moss Landing, operated by Texas-based Vistra Energy.
The City of Morro Bay has been collaborating with Vistra since 2020 on a proposal to transform the historic PG&E power plant into a battery energy storage facility.
“Vistra had submitted a application for a 600 megawatt battery storage facility to the city in late 2020,” says city manager Yvonne Kimball.
The project faced delays last year after public concerns were raised about safety risks associated with battery energy storage systems.
“We know battery energy storage is a piece of our clean energy future, and we know it has to be safe. And there's community trust that needs to be built,” says Assemblymember Dawn Addis of District 30.
In October, Vistra announced plans to submit its application to the California Energy Commission (CEC) in compliance with Governor Gavin Newsom’s 2022 executive order and Assembly Bill 205. This legislation grants the CEC authority to certify green energy projects, such as non-fossil fuel power plants and energy storage facilities, bypassing local jurisdictions.
However, safety concerns resurfaced following the January 17 fire at Moss Landing. The fire, which broke out around 3 p.m. at a natural gas-powered electricity generation plant and battery facility in an unincorporated area of Monterey County, triggered evacuations for about 1,200 residents. A Vistra spokesperson stated, “The cause of the fire has not yet been determined, but an investigation will begin once the fire is extinguished.”
The incident has reignited scrutiny of battery energy storage safety. In response, Assemblymember Dawn Addis of District 30 introduced new legislation seeking to indefinitely halt Vistra’s Morro Bay application until the company addresses safety protocols at its existing sites.
“This fire highlights the need for caution,” Addis said. “We need to ensure clean energy projects prioritize safety and environmental stewardship while advancing California’s climate goals.”
The future of the Morro Bay project remains uncertain as the debate continues.
