A proposed battery storage facility for South Orange County will not move forward, as Compass Energy Storage officially withdrew its application on September 1. Residents had protested the project for years, citing concerns about its proximity to homes and potential wildfire risks near schools and neighborhoods in San Juan Capistrano and Laguna Niguel.
Compass Energy Storage, the company behind the proposal, confirmed its withdrawal to the California Energy Commission after pausing the project to search for alternative site options. Ricky Davis, vice president of Compass Energy, stated in the withdrawal notice that the company could not find a suitable alternative site within budget and cited changed economic conditions.
The facility would have been located on 13 acres on the northern edge of San Juan Capistrano, approximately 1,500 feet from homes in Laguna Niguel, according to Laguna Niguel Mayor Gene Johns. It was designed to use lithium-iron-phosphate batteries connected to the energy grid to store excess power, releasing it back when needed.
Community opposition was led by BLESSIN, or Ban Lithium Energy Storage Systems in Neighborhoods. This resident group spent years actively campaigning against the project, arguing it would create a severe wildfire risk for nearby homes and schools. The San Juan Capistrano City Council had previously voted multiple times to prohibit the construction of new commercial energy storage systems. However, the applicant subsequently filed with the California Energy Commission, which had the authority to bypass city rulings.
Following the project's withdrawal, community efforts were publicly commended. At an October 6 Laguna Niguel City Council meeting, Mayor Gene Johns acknowledged BLESSIN leaders, noting their successful fight against a large company and their demonstration that the project was unsafe and did not belong in the area. Assemblymember Laurie Davies also attended, commending the residents for their efforts and noting the California Energy Commission found the community respectful during their visit.
A host of other elected officials had also spoken out against the project, including Supervisor Katrina Foley, Rep. Mike Levin, Assemblymember Diane Dixon, and leaders from the City of San Juan Capistrano. Cathleen Pryor, president of BLESSIN, stated the group supports responsible clean energy development but stressed that "clean energy infrastructure must be carefully evaluated and appropriately located."
Supporters generally view Battery Energy Storage Systems as a positive step toward clean energy, as they can store and provide surplus energy, reducing the need for additional fossil fuel generation during high-demand periods. However, similar facilities elsewhere in California have experienced fires. For instance, a battery storage facility in Moss Landing, Monterey County, ignited in January 2025, leading to the evacuation of about 1,500 residents and reports of health concerns such as headaches, coughing, and sore throats. Multiple fires have also occurred at battery energy storage facilities in San Diego County in recent years, including the Terra-Gen facility in Valley Center, the Gateway Energy facility in Otay Mesa, and the SDG&E facility in Escondido. The source material notes that these earlier incidents involved nickel-manganese-cobalt batteries, an older technology, whereas the proposed Compass project would have used lithium-iron-phosphate batteries.
Tim Lineberger, a spokesperson for Engie North America, the parent company of Compass Energy, thanked the California Energy Commission and the community for their engagement. Lineberger affirmed the company's commitment to advancing clean, reliable, and safe electricity solutions in California, despite the suspension of this specific project.
