San Juan Capistrano Battery Energy Storage System: A Closer Look at the Project, Benefits, and Community Concerns

As California aggressively transitions to clean, renewable energy, battery energy storage systems (BESS) are playing a pivotal role in maintaining grid stability and reliability. Among the latest and most debated proposals is the San Juan Capistrano Battery Energy Storage System, a 250-megawatt facility planned in Orange County, California.

Developed by Compass Energy Storage LLC, a subsidiary of Engie North America, this utility-scale project aims to provide up to 1,000 megawatt-hours of electricity—enough to power thousands of homes during peak demand. However, its proposed location near residential neighborhoods in San Juan Capistrano and Laguna Niguel has drawn both interest and opposition from local leaders and residents alike.

This article, based on verified city documents, state energy commission data, and community feedback, explores the project’s technical scope, regulatory path, safety standards, and the concerns raised by the public.

What Is a Battery Energy Storage System (BESS)?

A Battery Energy Storage System is a facility that stores excess electricity—often from renewable sources like solar or wind—and discharges it when the grid needs it most. This helps flatten out the “duck curve” caused by daytime solar surpluses and evening demand spikes.

The San Juan Capistrano project will use Lithium Iron Phosphate (LFP) batteries, known for their high thermal stability and safety advantages over other lithium-ion chemistries.

Project Details: Compass Energy’s San Juan Capistrano BESS

Compass Energy proposes building the facility on a 13-acre parcel adjacent to Interstate 5 and Camino Capistrano, on land owned by Saddleback Church. The system is designed to:

• Deliver 250 MW of power
  
• Store and release up to 1,000 MWh over a four-hour period
  
• Connect to the San Diego Gas & Electric (SDG&E) grid via a loop-in transmission line
  

The site would house battery enclosures, inverters, medium-voltage transformers, a collector substation, and fire safety infrastructure.

Regulatory Path: From Local Denial to State-Level Review

In November 2022, the San Juan Capistrano City Council denied a zoning change that would have allowed the project to proceed under local land-use law. In response, the developer opted into the California Energy Commission’s (CEC) Opt-In Certification pathway made possible by Assembly Bill 205 (AB 205).

This allows qualifying energy infrastructure projects to bypass city-level approvals. The CEC deemed Compass Energy’s application complete on April 30, 2025, beginning a 270-day review period that ends by January 25, 2026.

Community and Political Response

The project has sparked vocal opposition from surrounding communities, especially in Laguna Niguel. The City of Laguna Niguel, U.S. Representative Mike Levin (CA-49), and several neighborhood groups have formally objected, citing:

• The facility’s proximity to homes—just 1,500 feet away
  
• Its location in a very high fire hazard severity zone
  
• Environmental concerns, including toxic runoff potentially affecting the Oso/Arroyo Creek watershed
  
• Emergency access constraints due to a single rail crossing at the project site
  

These groups argue that while the technology is beneficial, the location is inappropriate.

Safety Measures and Environmental Mitigations

Compass Energy claims the project meets or exceeds all relevant safety protocols, including:

• UL 9540A battery fire safety certification
  
• NFPA 855 fire safety compliance
  
• On-site thermal infrared cameras, fire suppression systems, and deflagration vents
  
• Real-time air and water quality monitoring
  
• 24/7 remote and on-site surveillance
  

Additionally, they pledge to coordinate with local fire departments for response planning and compliance with the California Fire Code.

Potential Benefits and Economic Impact

Despite opposition, the project offers tangible benefits:

• Addresses California’s increasing demand for clean, dispatchable energy
  
• Helps manage peak loads and avoid fossil fuel use during high-demand periods
  
• Estimated $50 million in local economic benefits during construction and operation
  
• Efficient use of existing SDG&E infrastructure limits environmental disruption
  

Public Engagement and What Happens Next

The California Energy Commission has already hosted public meetings in May and June 2025, and a Draft Environmental Impact Report (EIR) is expected in Fall 2025. Once released, a public comment period will open, with a final decision due no later than January 2026.

Residents and stakeholders can submit formal comments via the CEC website, or attend upcoming local council briefings for updates.

Conclusion: Balancing Innovation with Responsibility

The San Juan Capistrano Battery Energy Storage System represents a modern solution to energy storage but also raises essential questions about project siting, risk mitigation, and transparency. As California pushes forward with clean energy innovation, projects like this must strike a balance between grid reliability and community safety.

Informed public engagement, expert evaluation, and transparent governance will be key to ensuring outcomes that benefit both residents and the region’s energy future.