One of the largest battery storage facilities in the US catches fire, potentially complicating construction of others

Last week, a fire broke out at one of the largest battery storage facilities in California. The Moss Landing facility had already run into trouble before. The recent fire, which destroyed a large part of the facility, could also lead to stricter requirements for new storage facilities and make other projects more expensive.

The battery storage sector in the United States has grown rapidly in recent years, particularly in states with a high share of intermittent renewable energy sources. These are primarily California and Texas, which accounted for more than 70% of the total installed capacity of these facilities in the US as of the middle of last year. California, the undisputed US leader in this area, is also home to the now infamous Moss Landing facility.

The first problems at Moss Landing emerged in 2021. At the time, operator Vistra had to take a large part of the facility offline because of overheating batteries. Around 7% of the battery modules were damaged in the incident after cooling water was released due to incorrect settings in the protection system, which then caused an electrical short circuit.

Last week's fire also broke out in the first phase of the facility, which had an installed capacity of 300 MW. In recent years, Vistra expanded the facility, increasing its total capacity to 750 MW and its storage capacity to 3000 MWh. According to the latest reports, the first phase—the oldest part of the facility—was largely destroyed by the fire.

The extensive fire also prompted an evacuation order for around 1200 residents in the surrounding area over concerns about toxic smoke. The evacuation order was lifted soon afterwards, however, when it became clear that air quality posed no risk to human health. A nearby highway was also closed during the fire. The incident is likely to prompt an extensive investigation, which could lead to changes in safety regulations for other facilities of this kind.

"I think this can basically best be described as the worst-case scenario for a disaster that happened here. It is a real wake-up call for the industry, and if we want to continue with sustainable energy, we must have ... safe battery systems,"Glenn Church of the Monterey County Board, where the facility is located, told CNN.