【SMM Analysis】Hecate Energy's 2.4GWh project encounters setbacks in California.

Hecate Energy faced rejection for a 2.4 GWh project in California, while San Diego voted against a ban on battery energy storage systems (BESS). According to search results, Escondido became the first city in San Diego County to prohibit battery energy storage sites until new land use policies and standards related to BESS are established. The city council unanimously voted on October 9 to impose a temporary restriction, initially set for 45 days, which could be extended by 10 months and 15 days, and further extended by 12 months.

The Escondido City Council believes that the city's current zoning regulations do not include specific standards for BESS facilities. Without appropriate land use policies and standards, the city cannot ensure compliance with California Senate Bill 38, which requires every BESS facility in California to establish emergency response and action plans to protect surrounding residents, neighboring properties, emergency responders, and the environment.

Additionally, the San Diego County Board of Supervisors unanimously rejected a proposed ban on battery energy storage systems (BESS) on September 11, 2024, marking a significant victory for the energy storage industry, especially following recent events in San Diego County and growing support for the ban. Instead of approving the ban, the board made slight modifications to the current permitting process, requiring projects seeking permits to continue submitting technical studies prepared by fire protection engineers, detailing fire safety features proposed in the design, operation, and use of BESS; including these studies in all discretionary BESS facility project application packages; ensuring these studies consider distance requirements from residential properties; and accepting and incorporating recommendations from these technical studies for all facilities.

Despite the San Diego County Board of Supervisors rejecting the BESS ban, Escondido's temporary emergency ordinance followed a 4-1 vote on August 28, adopting a resolution opposing new large-scale BESS developments. This was in response to the utility company AES's planned 320 MW/1,280 MWh Seguro project, located near residential areas and a major hospital. The Escondido City Council expressed concerns about the proliferation of BESS projects in and around the city, including negative economic impacts inconsistent with the city's 2023-2028 Comprehensive Economic Development Strategy, and potential risks to public health and safety from fires, including "thermal runaway," posed by these facilities.

Hecate Energy is also working on the permitting phase for its Ward Hill BESS project in Haverhill, Massachusetts, focusing on wetland classification around the installation. Despite setbacks in California, the company is actively advancing projects in other regions.