Battery storage and fire: Why early risk management is crucial - Battery

Without Professional Risk Management, Battery Storage Investments can go up in smoke. Business Manager Anders Christian Solbjerg Jensen from the Danish Technological Institute shares his insights on why independent risk assessment and early planning are crucial to avoiding disasters.

Battery storage fires are rare, but when they do occur, the consequences for businesses, the environment, and, in the worst-case scenario, employees can be severe.

One of the most notable examples is Moss Landing in California, where the world's largest battery energy storage facility, with a capacity of 1,200 MWh, was struck by a major incident. Losses amounting to hundreds of millions of dollars, the evacuation of 1,500 residents, and severe environmental damage put both the local community and the entire industry under critical scrutiny. It serves as a stark reminder of how disastrously wrong things can go when a single fault is allowed to escalate.

Fortunately, BESS fires are rare,” says Anders Christian Solbjerg Jensen, Business Manager and battery safety expert at the Danish Technological Institute. “But when they do happen, they can escalate extremely rapidly and have consequences that extend far beyond financial loss. We are talking about environmental impacts, societal consequences – and, in the worst-case scenario, loss of life.

More facilities - greater risk

Despite technological advancements, lithium-ion batteries still pose a fire risk. The number of BESS installations is growing exponentially; thus, even though the risk of fire in an individual facility remains low, the absolute number of fires will rise as more systems are deployed. Furthermore, when facilities are in close proximity, the risk of a fire spreading and escalating into a major incident increases.

Anders Christian Solbjerg Jensen emphasizes that safety efforts must begin early:

It is not just about preventing fires from starting, but just as much about mitigating the consequences if an incident does occur. Separation distance, technical installations, fire barriers, and emergency response plans are crucial. Often, minor errors make the difference between a minor incident and a major catastrophe.

No technology is fireproof

In the market, Anders Christian Solbjerg Jensen often encounters the misconception that certain battery types cannot burn – but this is a myth, he emphasizes:

We see fires in all types of batteries – even those claimed to be fireproof. If fire separation or maintenance is neglected based on that assumption, the risk increases significantly.

An additional challenge is the lack of common standards and unambiguous regulatory requirements. There is significant variation in how safety is managed from project to project and from municipality to municipality. This creates uncertainty and increases the risk of errors – in planning, installation, and operation alike.

Professionalism makes the difference

The best operators master the balance between cost and safety: well-thought-out positioning, systematic maintenance, robust emergency response routines, and always basing decisions on independent risk assessments rather than suppliers' sales materials, says Anders Christian Solbjerg Jensen

A BESS fire should always remain a technical incident, never a catastrophe. That is why we assist with screening, due diligence, and training, enabling both management and technicians to assess and manage the actual risks of their facilities before an uncontrollable fire occurs, says Anders Christian Solbjerg Jensen.

Today, batteries are one of the key technological drivers of the green transition, but without professional risk management, ambitions and investments may, in the worst-case scenario, go up in smoke.