Vistra withdraws application to build battery plant in Morro Bay. What’s next?
Vistra Corp. has withdrawn its application to build a 600-megawatt battery energy storage facility on the retired Morro Bay Power Plant property, according to an April 5 letter sent to the city.
Vistra did not explain its reasons for withdrawing the application, nor did it share its plans for the property — aside from announcing that the company would not gift the property to the city of Morro Bay.
“The Morro Bay property remains an underutilized asset adjacent to pre-existing transmission infrastructure,” the letter said. “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.”
Vistra applied to the city for a development application in 2020, then paused its application in October.
Back then, Vistra announced it was shifting gears and planned to opt-in to a new state process that allows companies to bypass local governments and apply to the California Energy Commission for approval of large renewable energy projects.
The project faced significant resistance from the public, however, starting with a campaign by Citizens for Estero Bay Preservation to pass a ballot measure designed to block industrial projects like the battery facility on the Embarcadero property. They worried about the property’s proximity to homes, Morro Bay High School and the estuary.
The ballot measure passed in November, with almost 60% of Morro Bay voters supporting it, according to the county election results.
The plans for Morro Bay were further clouded after a battery fire at Vistra’s Moss Landing facility renewed local fears about battery energy storage, inspiring another wave of criticism of the project.
After discussions with the city, Vistra decided to withdraw its application, according to the April 5 letter.
As of Thursday afternoon, Vistra had not yet applied to the California Energy Commission for the opt-in certification process, according to commission spokesperson Stacey Shepard.
“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,” Vistra’s letter said.
The city did not immediately respond to The Tribune’s request for comment. Vistra shared the letter with The Tribune, but declined to provide further comment.
This story was originally published April 10, 2025 at 4:30 PM.
