Utility Leaders Must Prioritize Energy Storage Safety to Prevent Future Crises

Why Utility Leaders Must Prioritize Energy Storage Safety—Before It’s Too Late

As utilities strive to achieve ambitious decarbonization and reliability goals, battery energy storage systems have emerged as a fundamental element of the transition to a modern grid. However, this rapid deployment necessitates an equally urgent focus on planning for energy storage safety before any crises arise.

Recent incidents involving lithium-ion battery storage systems in California, New York, and Arizona have highlighted the dangers associated with thermal runaway events, toxic gas releases, and other hazardous situations. Notable cases, such as the 2019 McMicken explosion in Arizona, a series of incidents in New York, and the recent Moss Landing fire in California, have exposed not only technical flaws but also critical lessons for utilities on effectively managing emergencies.

Yet, many utilities still lack comprehensive energy storage safety programs.

The High Stakes of Inaction

Regardless of whether a utility operates a single battery storage system or a fleet of storage assets, developing a company-wide safety program for energy storage has become essential. Without a well-defined plan, utilities risk being unprepared for incidents, leading to potentially devastating consequences: injury or loss of life, disorganized emergency responses, extended outages, regulatory non-compliance, legal repercussions, and damage to reputation.

Additionally, increasing regulatory expectations—such as those outlined in 2023 by the New York State Fire Safety Working Group and recently by the California Public Utilities Commission—underscore the necessity of integrating safety measures throughout the system life cycle. Although incidents may be infrequent, the highly publicized nature of battery fires in energy storage facilities emphasizes the need for robust safety plans.

Key components of an effective energy storage safety program should include:

– **Program Governance**: Securing executive sponsorship to align storage safety across the organization and promote accountability.
– **Stakeholder Engagement**: Actively involving key stakeholders such as first responders, customers, community members, regulators, and permitting authorities.
– **Operations and Response**: Integrating storage safety into standard operating procedures for system monitoring and control, incident reporting, and response coordination.
– **Risk Management**: Taking a comprehensive approach to mitigate risks associated with system design, vendor relationships, and operational, system, and environmental risks.

Waiting for a safety incident to prompt change is a risky gamble. The credibility of the utility sector—and the public’s trust in energy infrastructure—depends on taking proactive measures to prevent the next notable battery fire.

A Proactive Safety Program Delivers Measurable Benefits:

– **Effective Emergency Response**: A well-formulated plan ensures that first responders and system operators share a common understanding of how to isolate, extinguish, and respond to battery fires.
– **Improved Coordination with Local Authorities**: Routine training and protocol alignment with fire departments and emergency personnel reduce confusion and enhance safety during critical situations.
– **Minimized Operational Disruption**: Pre-established containment and restart procedures help limit system downtime.
– **Reduced Liability Exposure**: Legal defenses are more robust when utilities can demonstrate preventive measures and adherence to best practices.
– **Streamlined Siting and Permitting**: Coordinated planning and community education can shorten the timelines for siting and permitting energy storage projects.
– **Improved Stakeholder Confidence**: Investors, regulators, and community members expect assurance that new energy technologies are managed responsibly.

Lead Before the Headlines Do

It is inevitable that as energy storage systems become more prevalent across America’s electric grids, future battery fires will occur. However, having a plan in place to mitigate the risk of incidents and effectively respond when they happen will distinguish utility leaders committed to safety from those who are not.

Now is the time for utilities to implement enterprise-wide energy storage safety plans, engage in meaningful stakeholder outreach, and develop standard operating procedures addressing fire and explosion risks. Aligning with applicable codes and standards, preparing incident response playbooks, and collaborating with local authorities and first responders before systems become operational are crucial steps.

As energy storage becomes increasingly vital, so too must a comprehensive and well-structured approach to storage safety.