A battery plant fire in California started during a boom for energy storage

AUSTIN, Texas (AP) — A fire at one of the world’s largest battery plants 
in Northern California contained tens of thousands of lithium batteries 
that store power from renewable energy and have become a growing 
electricity source.

By a long shot, California and Texas are opening more large-scale battery 
projects than anywhere else in the U.S., bolstering power reliability in 
two large states where extreme weather fueled by climate change has led to 
electricity shortages and blackouts.

The fire that started Thursday at the Vistra Energy battery plant in Moss 
Landing, roughly 80 miles (about 130 kilometers) south of San Francisco, 
led to 1,700 people evacuating, closed part of Highway 1 and generated 
huge flames and significant amounts of smoke. The cause is under 
investigation.

Experts say lithium batteries are a safe technology essential for lowering 
carbon emissions and making grids more reliable. Still, residents near the 
fire expressed concerns about the impact.

In Texas, which is bracing for another blast of Artic winter weather next 
week, officials have credited batteries with helping stabilize the state’s 
independent grid, which was pushed to the brink of collapse during a 
deadly winter storm in 2021.

Here’s how and why batteries are booming in the two states:


A battery boost
Both Texas and California grapple with blackouts while trying to meet the 
energy needs of tens of millions of people as well as industry, including 
artificial intelligence and data centers.

Batteries soak up excess wind and solar energy for later use. That backup 
supply helps the grid during times of high demand, such as during a heat 
wave, when air conditioning use is heavy.

The cost of lithium batteries has dropped dramatically, boosting their 
popularity. For electric vehicle lithium batteries, as an example, prices 
fell by about 90% between 2008 to 2022, according to the U.S. Department 
of Energy’s Vehicle Technologies Office.

Cheaper lithium has made utility-scale batteries more cost-competitive 
than some natural gas alternatives. Batteries can also be switched on and 
discharge power in a matter of seconds.

Texas rushes to add more power
The Texas grid is rapidly gaining utility-scale batteries and added a 
whopping 5 gigawatts of storage over the last year, helping to keep up 
with demand and avoid blackouts.

The 2021 blackout and the Inflation Reduction Act of 2022 have helped 
drive the expansion. Texas’ deregulatory environment has also allowed wind 
and solar projects to develop quickly and easily, increasing the demand 
for batteries.

“There’s a lot less red tape that power plants have to go through in 
Texas,” said Joshua Rhodes, an energy researcher at The University of 
Texas at Austin. “Texas generally doesn’t have any regulations that stop 
development.”

Some experts say the cheaper cost of batteries is fueling their rapid 
adoption more than anything, however.

“I don’t think it’s as much of a story of regulation as it is economic 
efficiency,” said Jay Turner, professor of environmental science at 
Wellesley College. “The price of batteries and renewable generation has 
fallen so much that batteries and solar and wind, when put together, are 
so cost-competitive.”

California takes the lead
The state has long pursued sustainable energy and in 2002 created a set of 
clean energy standards that the International Energy Agency considers one 
of the most ambitious in the nation.

As solar and wind became increasingly popular, there were concerns that it 
would be extremely challenging to integrate that energy into the grid 
because of their intermittent nature.

“Even back in 2005, it was like any more than 15% renewables on the grid 
would be impossible,” said Sally Benson, professor of energy science 
engineering at Stanford University. Last year California had more than 11 
gigawatts of utility-scale storage on the grid.

Part of California’s motivation to act stems from electricity shortages. 
In 2020 the California Independent System Operator (CAISO) ordered 
rotating outages because the grid was overwhelmed with demand during a 
heat wave.

Since then several gigawatts of battery storage has been added, a major 
reason CAISO hasn’t ordered rotating outages in nearly four years, 
according to Denise Grab, an energy policy researcher at the University of 
California, Los Angeles.

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