Vistra withdraws plans for Morro Bay battery storage facility

November 19, 2025

By KAREN VELIE

In the latest twist in the controversial plan to build a battery storage facility in Morro Bay, in late October Vistra Energy informed the California Energy Commission it is no longer “advancing the project. A month earlier, Vista withdrew its application from the California Independent System Operator queue.

Vistra, a Texas-based energy company, had plans to construct and operate a 600-megawatt battery storage facility on approximately 24 acres of a roughly 70-acre site. However, a majority of residents had voiced concerns the facility will endanger the public while negatively impacting tourism and the fishing industry.

In Oct. 2024, Vistra asked the city to pause its municipal consideration while the company sought approval from the state through the opt-in certification process.

However AB 205, the new legislation which allows applicants to skip local approvals, requires approvals from both the California Energy Commission and the Coastal Commission. So, even if the California Energy Commission green-lights the project, it would still need approval from the California Coastal Commission, which has criticized the project.

In regards to constructing the proposed battery storage facility near the ocean in Morro Bay, the Coastal Commission found “significant development constraints,” including issues with habitat that supports special status species, the degradation of habitats, and the need for a prohibited sea wall.

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