SAN DIEGO (KGTV) — Arizona-based energy company Arevon Energy, Inc. opened a new 200-megawatt battery storage facility in Barrio Logan on Tuesday, next to the NASCO shipping yard.
The storage plant is now fully operational, featuring design elements specifically implemented to address safety concerns that have plagued similar facilities in San Diego County.
The plant will be called the Peregrine Energy Storage Project, and it will provide energy for approximately 200,000 homes during peak demand periods for two hours each day.
It will also implement cost-saving measures, such as storing energy during the day and releasing it back onto the grid during evenings, which will keep prices down and reduce the chances of brownouts and rolling blackouts.
Arevon said the state of California has built hundreds of these kinds of megawatt projects, because it helps reinforce the grid and saves costs for energy customers by storing power and re-distributing it when needed most.
However, battery storage plants specifically in San Diego have recently experienced devastating fires, endangering the surrounding community.
Last year, fire crews spent nearly two weeks battling a lithium-ion battery fire at a plant owned by REV Renewables in Otay Mesa. The following September, schools in Escondido were forced to close after a fire erupted at an SDG&E battery storage facility.
It's why Arevon's CEO, Kevin Smith, explained what safeguards are in place with the storage plant.
"Each one of these battery packs is a cooling system," Smith said. "The packs monitor the temperature 24 hours a day, so if there's any overheating, it automatically shuts down."
Smith compared the design of the Peregrine Energy Storage Project to other facilities in San Diego County that experienced fires — pointing out key differences: it’s outdoors, not inside a warehouse, and the battery packs are spread out on a single level instead of stacked.
Smith also said the plant uses the latest state-of-the-art technology, whereas one of the plants that caught fire had technology nearly a decade old. Smith also said Arevon has been working with local fire departments and training them on their systems so they know how to monitor and respond in the event of a fire.
Mayor Todd Gloria attended the ribbon-cutting ceremony, noting the project's significance for Barrio Logan.
"I'll say that this moment has a lot of meaning to it," Gloria said.
Gloria said the plant is part of the first update to Barrio Logan's community plan and aligns with the city's push toward energy independence.
"The end result will be more affordable housing, more infrastructure investment, more good-paying jobs," Gloria said.
The project has also established a relationship with nearby schools, including Perkins Elementary School, located less than a mile from the facility. While the proximity initially raised concerns, the relationship has evolved into a beneficial partnership.
"I believe that they were trying to reach out to different stakeholders in the community in order to establish goodwill," said Fernando Hernandez, principal at Perkins Elementary School.
Hernandez said that the school and Arevon talked about their concerns about a plant being so close to the students.
"I'll be honest, we did have a conversation about it when the fire in Otay happened," Hernandez said. "We're optimistic."
It's important to note that Arevon is not affiliated with the facilities involved in the Otay Mesa and Escondido fires from 2024.
"[Arevon] has operated their energy storage facilities in U.S. communities since 2021 without a single thermal or recordable safety incident," a spokesperson for the company told ABC 10News via email.
That outreach has translated into tangible benefits for Barrio Logan stakeholders, from sponsoring scholarships at the Barrio Logan Institute to sponsoring the Deputy Sheriff's Association of San Diego, as well as field trips for the elementary school.
"Thanks to Arevon, we've had kids go to the La Brea Tar Pits in Los Angeles," Hernandez said. "Our 7th and 8th graders visited Washington D.C. and rode a plane for their very first time."
Smith emphasized community investment as a core value for the company.
"I like to say that building facilities like this gives us the property to invest in the local community as well," Smith said.
Arevon said that over the life of the project, it will disburse long-term property tax benefits to a total of more than $28M.
