California Strengthens Safety Standards for Energy Storage and Generation Facilities

California’s utility-scale energy storage capacity has expanded dramatically, from 500 MW in 2019 to 13,300 MW in 2024, with projections estimating a need for 52,000 MW by 2045. This rapid growth, driven by the state’s Renewables Portfolio Standard (RPS) and carbon neutrality goals, has been accompanied by several high-profile safety incidents at lithium-ion ESS facilities, including fires and evacuations.

Recognizing this trend, GO 167-C introduces the first statewide ESS-specific maintenance and operation standards, requiring both incident reporting and coordination with local emergency response agencies.

“The Commission’s effort to enforce maintenance and operations standards, as well as track safety-related incidents in the ESS fleet, is particularly important given recent safety incidents and the potential for those incidents to undermine the valuable contributions ESS offers to California’s carbon-neutral goals.” said NextEra Energy Resources.

Key Provisions of GO 167-C

• Logbook Standards: ESS operators must document all operational changes, outages, and system maintenance, aligning with thermal and hydroelectric facilities.
• Emergency Response Plans: Required submission of Emergency Response and Action Plans to local authorities, with coordination on drills and communication protocols.
• Cybersecurity and Trend Analysis: Facilities must regularly update operational software and analyze equipment trends to prevent failures.
• Incident Reporting: ESS operators must report fires, explosions, hazardous emissions, and equipment failures exceeding $200,000 in damages to CPUC within 24 hours.

Implications for ESS Manufacturers

For energy storage system manufacturers, GO 167-C signifies a regulatory shift toward performance accountability and safety assurance. Manufacturers will face increased demand from facility operators for compliant equipment, detailed documentation, and support for emergency protocols.

Key impacts include:

• Design Considerations: ESS products will need to integrate advanced safety features, such as thermal runaway prevention, real-time monitoring, and remote diagnostics, to meet operational standards.
• Documentation Requirements: Manufacturers may be required to supply detailed specifications, warranties, and maintenance guidance to support operators’ compliance with logbook and audit standards.
• Market Differentiation: Companies offering innovative safety technologies, such as in-cell battery protection and AI-powered trend analysis, could gain a competitive advantage in the California market and beyond.

“The Commission’s mandates align with leading industry practice,” stated the Electric Power Research Institute (EPRI), highlighting the importance of advanced monitoring and safety protocols.

What Comes Next

All existing ESS facilities must comply with GO 167-C within 180 days, while new facilities must submit compliance documents within 30 to 90 days of commercial operation. The CPUC's Safety and Enforcement Division will conduct audits and inspections and enforce penalties for non-compliance.

With California setting the precedent, this resolution could influence national ESS safety frameworks as states and utilities seek to ensure safe and reliable energy storage deployment in pursuit of decarbonization targets.

“We are advancing safe technology and industry standards through this General Order to ensure public protection and increase availability of safe, affordable, and reliable energy for the state,” the CPUC stated.