Morro Bay’ infamous Battery Energy Storage System (BESS) Project would appear to have died a quiet death, after power plant owner and applicant Vistra Corp., notified State agencies it was no longer pursuing the project.
Estero Bay News sought to confirm the status of the project with Vistra but didn’t receive a reply until after deadline for our Dec. 4 issue.
A Vistra representative did reply to our inquiries after we went to press, and here is what the company had to say:
Vistra’s Meranda Cohn said, “Vistra had previously paused plans for its Morro Bay energy storage project and recently withdrew the related interconnection project from CAISO.”
She explained that they believe facilities like their proposed BESS are best done on the site of old, industrial facilities, so-called “Brown Sites” as opposed to undeveloped lands or “Green Sites.”
“It is our experience,” Cohn said, “that utilizing or re-using a power generation site for renewable and zero-carbon energy is the most sustainable and environmentally conscious approach to meeting the growing demand for electricity.
“Building a new greenfield facility requires disturbing land and building transmission lines and substations, which are expensive and resource-intensive, including time, land, labor, and more.”
Vistra asked the City to pause its review and environmental work on its permit application with the City just before the November 2024 General Election, which included a local initiative, Measure A24, that concerned the zoning of the power plant property. That measure required the City Council to seek voter approval to change zoning on any parcel from Beach Street north, including the power plant property.
The concern among local residents was that Vistra intended to seek permit approval through a special State Law, Assembly Bill 205, that established a work around through the California Energy Commission (CEC) for projects like the Morro Bay BESS when they encountered local opposition.
Vistra had pulled its Morro Bay BESS from consideration by the California Independent System Operator (Cal-ISO) in October, and also advised the CEC that it would not be seeking a permit through AB 205, though they apparently did not inform the City of Morro Bay or local residents (nor the media) of their actions.
And it appears they are still mulling over what to do with the 100-plus acre power plant property that has been closed since 2014. The mayor previously suggested Vistra donate the property to the City and walk away, which Vistra politely declined.
“When we have new information about the potential investment into repurposing Vistra’s Morro Bay site,” Cohn said, “we will share it. Thanks — and happy Holidays.”
Meanwhile, Vistra continues to clean up its burnt-out BESS at Moss Landing, which was destroyed last January in a spectacular fire that forced the evacuation of the surrounding area including Moss Landing Harbor and parts of nearby Castroville.
In videos posted online shortly after the fire, flames appear to shoot some 200-feet into the sky and thick black, toxic smoke billowed away from the fire and over the Elkhorn Slough, which is adjacent to the plant. Scientists continue to test the Slough for contaminants.
Cohn said, “Our top priority is the safe operations of every facility in our portfolio.
“The comprehensive review and investigation of the incident at the 300-megawatt Phase I system at our Moss Landing facility is ongoing, which will inform current and future energy storage operations across our fleet.”
Also, the Moss Landing Fire had a profound effect on lawmakers, some of whom, like local Assemblywoman Dawn Addis, had been supporters but soured considerably on the Morro Bay project and battery plants in general that are sited near homes.
So too was our State Sen. John Laird moved to act, sponsoring legislation concerning stepped up safety for these big power storage facilities.
And the Morro Bay City Council passed a local ordinance prohibiting “grid sized” battery storage facilities within the City Limits. That means if someone wanted to install solar panels and a battery backup for their home or business, it would likely be allowed under the City’s ordinance.
But something like Vistra’s proposed 600 MW BESS wouldn’t stand a chance of winning approval.
