Chula Vista approves 50-megawatt battery storage project aimed at boosting clean energy reliability

Chula Vista will soon be home to a 50-megawatt battery storage facility after the City Council on Tuesday unanimously approved the project, calling it a key piece of the city’s plan to expand renewable energy and improve grid reliability.

The project, known as the Chula Vista Energy Center 2, will be developed by Wellhead Electric Company on a parcel that already hosts a natural gas power generation facility built in 2000. The new installation will use containerized lithium-ion batteries to store excess renewable electricity and discharge it during peak hours or grid emergencies.

Mayor John McCann said the city took extra precautions in reviewing the proposal, noting lessons learned from older battery facilities that experienced fires in Otay Mesa and Escondido.

“We did our due diligence, and the technology that they’re using is far superior and up to date and new,” McCann said Wednesday. “They also are outdoors and not in a warehouse. So I think we did our due diligence in making sure that these battery systems would be as safe as possible.”

The project site at 3497 Main St. lies between Del Monte Avenue and Reed Court in a limited industrial zone, buffered from nearby residential areas by existing landscaping and fencing. The facility will occupy the northern section of the property, operating independently from the gas plant on the southern portion.

The system will consist of 56 temperature-controlled containers housing lithium-ion batteries, supported by transformers, electrical cabinets and substation improvements. A second phase of the project will add additional containers over time to offset gradual battery capacity loss, maintaining the site’s total capacity of 50 megawatts.

The project cleared city safety reviews — including from the Chula Vista Fire Department and the Engineering and Capital Projects Department — and will follow state and federal codes under third-party fire engineer supervision.

McCann said the council’s unanimous vote reflected confidence in the system’s safety and its benefit to the city’s clean energy goals.

“It’s great because this project is going to generate millions of dollars in taxes and economic development that together will bring real value to Chula Vista and the local economy,” he said.

Wellhead Electric President Harold Dittmer said the project will cost around $75 million and will feature “purpose-built containers that are tested and engineered like crazy,” using Tesla Megapack 2 technology and lithium iron phosphate (LFP) battery chemistry, which he described as safer and more stable than earlier versions.

“We had to work with the fire department and make sure that all of the codes are met and the spacing is far enough apart so that if one does happen to catch on fire, it doesn’t start the neighbor,” Dittmer said Wednesday. “The last thing in the world we want to do as long-term owners of these things is build something unsafe.”

McCann said the city did not contribute any public funds toward the project as Wellhead Electric owns the property and is financing construction privately.

“There was already an existing facility there,” McCann said. “Wellhead actually owns the property, and was just expanding on the property that they owned.”

He said the project represents private investment in local clean-energy infrastructure and will benefit the community through job creation and new revenue.