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

AUSTIN, Texas (AP) 鈥 A fire at one of the world鈥檚 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.
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Flames and smoke from a fire fill the sky at the Moss Landing Power Plant Thursday Jan. 16, 2025 in Moss Landing, Calif. (Shmuel Thaler /The Santa Cruz Sentinel via AP)

AUSTIN, Texas (AP) 鈥 A fire at one of the in Northern California contained tens of thousands of lithium batteries that store power from renewable energy and 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 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 next week, officials have credited batteries with helping stabilize the state鈥檚 independent grid, which was pushed to the during a deadly winter storm in 2021.

Here鈥檚 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 .

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, the U.S. Department of Energy鈥檚 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 and the have helped drive the expansion. Texas鈥 deregulatory environment has also allowed wind and solar projects to develop quickly and easily, increasing the demand for batteries.

鈥淭here鈥檚 a lot less red tape that power plants have to go through in Texas,鈥 said Joshua Rhodes, an energy researcher at The University of Texas at Austin. 鈥淭exas generally doesn鈥檛 have any regulations that stop development.鈥

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

鈥淚 don鈥檛 think it鈥檚 as much of a story of regulation as it is economic efficiency,鈥 said Jay Turner, professor of environmental science at Wellesley College. 鈥淭he price of batteries and renewable generation has fallen so much that batteries and solar and wind, when put together, are so cost-competitive.鈥

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.

鈥淓ven back in 2005, it was like any more than 15% renewables on the grid would be impossible,鈥 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鈥檚 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鈥檛 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. is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

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The Associated Press鈥 climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP鈥檚 for working with philanthropies, a list of supporters and funded coverage areas at .

Isabella O'malley And Nadia Lathan, The Associated Press

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