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Q&A

What’s the Deal with Battery Storage Regulation?

A conversation with Nikhil Kumar of GridLab

Nikhil Kumar, program director at GridLab
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Today’s sit-down is with Nikhil Kumar, a program director at GridLab and an expert in battery storage safety and regulation. Kumar’s folks reached out to me after learning I was writing about Moss Landing and wanted to give his honest and open perspective on how the disaster is impacting the future of storage development in the U.S. Let’s dive in!

The following is an abridged and edited version of our conversation.

So okay – walk me through your perspective on what happened with Moss Landing.

When this incident occurred, I’d already been to Moss Landing plenty of times. It caught me by surprise in the sense that it had reoccurred – the site had issues in the past.

A bit of context about my background – I joined GridLab relatively recently, but before that I spent 20 years in this industry, often working on the integrity and quality assurance of energy assets, anything from a natural gas power plant to nuclear to battery to a solar plant. I’m very familiar with safety regulation and standards for the energy industry, writ large.

Help me understand how things have improved since Moss Landing. Why is this facility considered by some to be an exception to the rule?

It’s definitely an outlier. Batteries are very modular by nature, you don’t need a lot of overall facility to put battery storage on the ground. From a construction standpoint, a wind or solar farm or even a gas plant is more complex to put together. But battery storage, that simplicity is a good thing.

That’s not the case with Moss Landing. If you look at the overall design of these sites, having battery packs in a building with a big hall is rare.

Pretty much every battery that’s been installed in the last two or three years, industry has already known about this [risk]. When the first [battery] fire occurred, they basically containerized everything – you want to containerize everything so you don’t have these thermal runaway events, where the entire battery batch catches fire. If you look at the record, in the last two or three years, I do not believe a single such design was implemented by anybody. People have learned from that experience already.

Are we seeing industry have to reckon with this anyway? I can’t help but wonder if you’ve witnessed these community fears. It does seem like when a fire happens, it creates problems for developers in other parts of the country. Are developers reckoning with a conflation from this event itself?

I think so. Developers that we’ve talked to are very well aware of reputational risk. They do not want people to have general concern with this technology because, if you look at how much battery is waiting to be connected to the grid, that’s pretty much it. There’s 12 times more capacity of batteries waiting to be connected to the grid than gas. That’s 12X.

We should wait for the city and I would really expect [Vistra] to release the root cause investigation of this fire. Experts have raised a number of these potential root causes. But we don’t know – was it the fire suppression system that failed? Was it something with the batteries?

We don’t know. I would hope that the details come out in a transparent way, so industry can make those changes, in terms of designs.

Is there anything in terms of national regulation governing this sector’s performance standards and safety standards, and do you think something like that should exist?

It should exist and it is happening. The NFPA [National Fire Prevention Association] is putting stuff out there. There might be some leaders in the way California’s introduced some new regulation to make sure there’s better documentation, safety preparedness.

There should be better regulation. There should be better rules. I don’t think developers are even against that.

OK, so NFPA. But what about the Trump administration? Should they get involved here?

I don’t think so. The OSHA standards apply to people who work on site — the regulatory frameworks are already there. I don’t think they need some special safety standard that’s new that applies to all these sites. The ingredients are already there.

It’s like coal power plants. There’s regulation on greenhouse gas emissions, but not all aspects of coal plants. I’m not sure if the Trump administration needs to get involved.

It sounds like you're saying the existing regulations are suitable in your view and what’s needed is for states and industry to step up?

I would think so. Just to give you an example, from an interconnection standpoint, there’s IEEE standards. From the battery level, there are UL standards. From the battery management system that also manages a lot of the ins and outs of how the battery operates —- a lot of those already have standards. To get insurance on a large battery site, they have to meet a lot of these guidelines already — nobody would insure a site otherwise. There’s a lot of financial risk. You don’t want batteries exploding because you didn’t meet any of these hundreds of guidelines that already exist and in many cases standards that exist.

So, I don’t know if something at the federal level changes anything.

My last question is, if you were giving advice to a developer, what would you say to them about making communities best aware of these tech advancements?

Before that, I am really hoping Vistra and all the agencies involved [with Moss Landing] have a transparent and accountable process of revealing what actually happened at this site. I think that’s really important.

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Q&A

How Developers Should Think of the New IRA Credit Rules

A conversation with Scott Cockerham of Latham and Watkins.

How Developers Should Think of the New IRA Credit Rules
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This week’s conversation is with Scott Cockerham, a partner with the law firm Latham and Watkins whose expertise I sought to help me best understand the Treasury Department’s recent guidance on the federal solar and wind tax credits. We focused on something you’ve probably been thinking about a lot: how to qualify for the “start construction” part of the new tax regime, which is the primary hurdle for anyone still in the thicket of a fight with local opposition.

The following is our chat lightly edited for clarity. Enjoy.

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An Influential Anti-ESG Activist Targets A Wind Farm

And more of the week’s most important news around renewable energy conflicts.

Map of renewable energy fights.
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1. Carroll County, Arkansas – The head of an influential national right-wing advocacy group is now targeting a wind project in Arkansas, seeking federal intervention to block something that looked like it would be built.

  • Will Hild, executive director of Consumers’ Research, recently called on the Trump administration to intervene against the development of Scout Clean Energy’s Nimbus wind project in Arkansas. Consumers’ Research is known as one of the leading anti-ESG advocacy organizations, playing a key role in the “anti-woke” opposition against the climate- and socially-conscious behavior of everyone from utilities to Anheuser-Busch.
  • In a lengthy rant posted to X earlier this month, Hild pointed to Carroll County’s local moratorium on wind projects and claimed Nimbus being built would be “a massive win for ESG radicals – and a slap in the face for local democracy.”
  • As I told you in April, the Nimbus project prompted Carroll County to enact the moratorium but it was grandfathered in because of contracts signed prior to the ban’s enactment.
  • However, even though Nimbus is not sited on federal land, there is a significant weak point for the project: its potential impacts on endangered birds and bats.
  • Scout Clean Energy has been working with the Fish and Wildlife Service since at least 2018 under Trump 1.0. However, the project’s habitat conservation plan was not completed before the start of the current Trump term and Scout did not submit an application for Nimbus to receive an incidental take permit from the Service until May of this year.
  • Enter the Trump administration’s bird-centric wind power crackdown and the impact of Hild’s commentary comes into fuller focus. What will happen to all the years of work that Scout and the Service did? It’s unclear how the project reckons with this heightened scrutiny and risk of undue federal attention.

2. Suffolk County, New York – EPA Administrator Lee Zeldin this week endorsed efforts by activists on Long Island to oppose energy storage in their neighborhoods.

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Spotlight

Trump’s Permit Freeze Prompts Some Solar to Eye Exits

Is there going to be a flight out of Nevada?

Solar in Nevada.
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Donald Trump’s renewables permitting freeze is prompting solar companies to find an escape hatch from Nevada.

As I previously reported, the Interior Department has all but halted new approvals for solar and wind projects on federal lands. It was entirely unclear how that would affect transmission out west, including in the solar-friendly Nevada desert where major lines were in progress to help power both communities and a growing number of data centers. Shortly after the pause, I took notice of the fact that regulators quietly delayed the timetable by at least two weeks for a key line – the northern portion of NV Energy’s Greenlink project – that had been expected to connect to a litany of solar facilities. Interior told me it still planned to complete the project in September, but it also confirmed that projects specifically necessary for connecting solar onto the grid would face “enhanced” reviews.

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