California battery factory fire broke out during energy storage boom

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

By far, California and Texas are opening more large-scale battery projects than anywhere else in the United States, boosting electricity reliability in two large states where extreme weather fueled by climate change has led to electricity shortage and power outages.

The fire that broke out Thursday at the Vistra Energy battery plant in Moss Landing, about 80 miles south of San Francisco, forced the evacuation of 1,700 people, closed part of Highway 1 and generated huge flames and large quantities of smoke. The cause is under investigation.

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

In Texas, which is preparing for another arctic winter blast The next week, officials credited the batteries with helping stabilize the state’s independent grid, which has been pushed to the back burner. on the verge of collapse during a deadly winter storm in 2021.

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

A battery boost

Texas and California are grappling with power outages while trying to meet the energy needs of tens of millions of people as well as industry, including artificial intelligence and data centers.

Batteries absorb excess wind and solar energy for later use. This backup power helps the grid during times of high demand, such as during a heat wave, when air conditioning usage is high.

The cost of lithium batteries has fallen dramatically, boosting their popularity. For lithium batteries in electric vehicles, for example, prices fell by around 90% between 2008 and 2022, according to the U.S. Department of Energy’s Office of Vehicle Technologies.

Cheaper lithium has made industrial batteries more competitive than some natural gas alternatives. Batteries can also be switched on and discharged in seconds.

Texas rushes to add more power

The Texas grid is rapidly acquiring batteries at scale and has added 5 gigawatts of storage over the past year, helping to meet demand and avoid power outages.

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

“There’s a lot less red tape that power plants have to deal with in Texas,” said Joshua Rhodes, an energy researcher at the University of Texas at Austin. “Texas generally has no regulations that stop development.”

Some experts, however, say that the lower cost of batteries is primarily fueling their rapid adoption.

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

California takes the lead

The state has long had an interest in sustainable energy and in 2002 created a set of clean energy standards that the International Energy Agency considers among the most ambitious in the country.

As solar and wind power became increasingly popular, some feared that it would be extremely difficult to integrate this energy into the grid due to their intermittent nature.

“Even in 2005, it was impossible to have more than 15 percent renewable energy on the grid,” said Sally Benson, professor of energy sciences 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 comes from electricity shortages. In 2020, the California Independent System Operator (CAISO) ordered rotating outages because the grid was overwhelmed by demand during a heat wave.

Since then, several gigawatts of battery storage have been added, a major reason CAISO has not 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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Lathan is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to cover under-reported issues.

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