San Diego’s electricity grid faces intense pressure during peak hours, typically from 4 to 9 p.m., when residents return home and crank up air conditioners, appliances, and electric vehicle chargers. According to the U.S. Bureau of Labor Statistics, the average electricity rate in San Diego was 47.7 cents per kWh in November 2023, among the highest in the U.S., making efficient energy management critical. The Avocet project addresses this challenge by storing solar energy generated during the day and releasing it during these high-demand evening hours. With a capacity of 200 MW and 800 MWh, the system can deliver power for four hours, ensuring homes stay lit when the grid is stressed, as reported by Electrek.
The project, developed in partnership with San Diego Gas & Electric (SDG&E), is part of a broader effort to modernize the region’s energy infrastructure. By smoothing out demand spikes, the battery reduces the need for gas-powered “peaker plants,” which are costly and emit greenhouse gases. This aligns with California’s mandate to integrate renewable energy and phase out fossil fuels, offering a cleaner alternative that enhances grid reliability.
Cutting-Edge Battery Technology
The Avocet facility uses lithium iron phosphate (LFP) batteries, known for their safety, thermal stability, and long lifespan. Unlike traditional lithium-ion batteries, LFP batteries are less prone to degradation and thermal runaway—a condition where excessive heat triggers chemical reactions that can lead to fires. Posts on X highlight the growing preference for LFP in large-scale storage due to these advantages. The facility’s 800 MWh capacity allows it to store excess solar energy generated during daylight hours, when production often exceeds demand, and dispatch it when needed most, such as during hot summer evenings or unexpected outages.
This technology is a cornerstone of California’s energy strategy. According to the San Diego County Water Authority, battery storage systems like Avocet are essential for extending the availability of renewable energy into peak periods, reducing the risk of rolling blackouts. The project’s location in Barrio Logan, near existing SDG&E infrastructure, minimizes the need for extensive new transmission lines, streamlining its integration into the grid.
Community and Environmental Benefits
The Avocet project isn’t just about power—it’s about people and the planet. By enabling cleaner energy delivery, it supports San Diego Community Power’s (SDCP) mission to provide renewable electricity at competitive rates. SDCP’s programs, such as the Solar Battery Savings Program, incentivize homeowners to install batteries, further reducing grid strain. The project also creates local jobs, from construction to maintenance, boosting the economy in Barrio Logan, a historically underserved area, as noted by NewsBreak.
Environmentally, the facility helps cut carbon emissions by replacing fossil fuel-based power with stored solar energy. In 2020, transportation accounted for 48% of emissions in the San Diego region, per SDCP, but projects like Avocet indirectly support electrification by ensuring a stable grid for electric vehicles and appliances. This aligns with broader efforts to improve air quality and combat climate change, especially critical in a region prone to heatwaves and wildfires.
Part of a Growing Trend
The Avocet project is one of many battery storage initiatives transforming San Diego’s energy landscape. SDG&E has been expanding its portfolio, with 341 MW of utility-owned storage across 21 sites and another 40 MW in development, according to their website. The Westside Canal Battery Energy Storage facility in Imperial Valley, recently expanded by 100 MW, complements Avocet by adding capacity to store and dispatch renewable energy. These projects collectively enhance grid resilience, particularly during extreme weather events like the 2022 heatwave, when wholesale electricity prices spiked to $2,000 per MWh, as reported by Electrek.
Nationwide, battery storage is gaining momentum. A similar 900 MW solar and storage project in Indiana, highlighted by Electrek, shows how large-scale facilities are scaling up to meet clean energy demands. In San Diego, the Avocet project benefits from California’s favorable policies, including the Self-Generation Incentive Program (SGIP), which offers rebates for battery installations, making such systems more accessible to both utilities and homeowners.
Challenges and Safety Considerations
While battery storage is a game-changer, it’s not without challenges. A 2024 fire at the Gateway Energy Storage facility in Otay Mesa, caused by thermal runaway in lithium-ion batteries, raised safety concerns. The blaze, reported by the San Diego Union-Tribune, took 17 days to fully extinguish, prompting evacuations and highlighting the risks of large-scale battery systems. The Avocet project mitigates these risks by using LFP batteries, which are less susceptible to such incidents, and incorporates advanced fire suppression systems, as is standard in modern battery enclosures.
Community engagement is also critical. San Diego County is developing standards for future battery facilities, incorporating input from residents and industry experts to address concerns about noise, aesthetics, and safety. Projects like Avocet demonstrate that with proper design and oversight, battery storage can be both safe and beneficial.
Why It Matters for San Diego
For San Diego residents, the Avocet project means more reliable power during peak hours, when electricity costs can soar to 65 cents per kWh or higher under SDG&E’s time-of-use plans. By storing cheap, abundant solar energy and releasing it when prices peak, the facility helps stabilize rates and reduces reliance on expensive fossil fuel plants. For the 3.6 million people served by SDG&E, this translates to fewer outages and lower environmental impact, especially during heatwaves that strain the grid, as noted by AccuWeather’s 2025 forecasts.
The project also empowers consumers. Pairing home solar with battery storage, as promoted by SDCP and EnergySage, allows residents to save 20-30% on installation costs and reduce bills by shifting usage to off-peak hours. This synergy between utility-scale and residential storage creates a more resilient, decentralized energy network, critical for a region facing increasing climate challenges.
A Blueprint for the Future
The Avocet Energy Storage Project is a bold step toward a cleaner, more reliable energy grid. By leveraging advanced LFP battery technology and strategic partnerships with SDG&E and SDCP, Arevon Energy is setting a standard for how renewable energy can power communities. As California races toward its 2045 carbon-free goal, projects like this one prove that large-scale battery storage is not just viable but essential. For San Diego, it’s a promise of stable power, lower emissions, and a model for other cities to follow in the transition to a sustainable energy future.
