Vistra Energy withdraws plans to build battery storage facility at dormant Morro Bay Power Plant ...Middle East

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Vistra Energy withdraws plans to build battery storage facility at dormant Morro Bay Power Plant

MORRO BAY, Calif. – Earlier this month, Texas-based Vistra Energy withdrew a 2020 proposal to reuse part of the retired Morro Bay Power Plant at 1290 Embarcadero to create a battery energy storage system.

"When there is more to share about our redevelopment plans, including the potential to use the Opt-In Certification Program to objectively review a plan to renew and reuse the Morro Bay Power Plant site, we will inform you and the community," stated a letter from Vistra Energy to the City of Morro Bay on April 4, 2025. "The Morro Bay property remains an underutilized asset adjacent to pre-existing transmission infrastructure. We remain committed to evaluating how best to deploy new energy technologies at the site to deliver a solution that is good for the community, our company, and the state of California’s reliability and electric needs."

    According to Vistra Energy, the initial 22-acre proposal was expected to power about 450,000 homes and provide an estimated $4.8 million total annual property tax payments to San Luis Obispo County if the project received its expected capital expenditure funding.

    Image courtesy of Vistra Energy

    Last year, Vistra Energy paused its plans to build the battery storage system and the City of Morro Bay requested a transfer of the property to City ownership in March of this year.

    In response, Vistra Energy declined the opportunity to gift the shuttered site to Morro Bay in its April letter withdrawing development plans and asked that the City of Morro Bay, "cease any further processing of the application" for the proposal.

    In Nov. 2024, voters approved Measure A-24 which requires the City of Morro Bay to consult with the public and receive approval for any industrial developments within the City.

    After a fire in January of this year at a Vistra Energy-operated battery storage facility in Monterrey County resulted in the evacuation of about 1,500 residents and a second fire sparked the next month at the same facility, the City Council of Morro Bay adopted Ordinance No. 670 which placed a temporary prohibition on the proposed battery storage facility.

    Moss Landing Power Plant Fire, courtesy of KION News

    The fire started at the lithium-ion battery energy storage system that was first brought online in 2020 and the fire was allowed to burn itself out prompting the evacuation of residents in the surrounding area and the declaration of a state of emergency in Monterrey County.

    "No active fire suppression is taking place, the batteries must burn themselves out. No water can be used. This is standard action for battery fires," stated an update from the Monterey County Emergency Operations Center in January.

    Even residents in neighboring Santa Cruz County were advised by public health officials to stay indoors, close doors and windows, and turn off ventilation systems while the fire was allowed to burn itself out.

    The City of Morro Bay noted the public backlash to the Moss Landing Power Plant fire and shifting legislative landscape when it requested the Vistra Energy gift the dormant local power plant.

    At the end of its letter ending the battery storage system proposal to the City of Morro Bay, Vistra Energy noted it, "looks forward to working with you [Morro Bay public officials] in good faith in the future."

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