AES scraps 320 MW California battery project amid fierce local opposition

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AES Corporation has scrapped plans for the 320 MW / 1,280 MWh Seguro energy storage project in San Diego County, withdrawing its application after a three-year battle with North County residents.

The developer formally notified county officials of the exit, marking a decisive win for the “Stop Seguro” grassroots movement that had fought the lithium-ion facility since its inception.

(Read: “The community warning signs that can make or break a battery project”)

While the Stop Seguro group provided the friction, several technical and regulatory barriers ultimately made the project untenable for the developer. A critical blow came when the Palomar Health board of directors rejected a request for an easement through hospital grounds, cutting off the project’s only viable path to connect to the nearby SDG&E Escondido Substation. Without this connection, the facility’s business model effectively collapsed.

Local government and fire officials also closed off remaining paths for the project as the Escondido City Council enacted a moratorium on new battery storage systems within city limits. Simultaneously, the San Marcos Fire Protection District and the county fire chief adopted stricter safety codes requiring 100-foot setbacks from residential and educational lot lines. These new siting requirements would have forced AES to drastically shrink the footprint of the facility, further undermining its economic feasibility.

“While AES is no longer moving forward with the proposed Seguro project as we prioritize other projects, we remain committed to advancing projects that can provide the safe, reliable, and affordable power needed to strengthen the region’s electric grid and generate meaningful economic benefits locally,” said the company in a statement.

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