A proposed solar and battery energy storage facility known as the Zeta Project, approved by Merced County in February 2025, is drawing both support and scrutiny. Slated for development purchased on approximately 622 acres of farmland just nine miles south of Los Banos, the Zeta Solar and Battery Energy Storage System (BESS) is being built by Longroad Energy and backed by a 20-year power purchase agreement with San José Clean Energy (SJCE). But while developers and regulators tout the benefits, concerned citizens say the risks and unanswered questions surrounding the project are too significant to ignore.
Project Details
The Zeta Project includes 75 megawatts (MW) of solar photovoltaic panels paired with a battery energy storage system capable of storing 75 MW for up to 8 hours. The facility will tie into PG&E’s Mercy Springs Substation via a 1,700-foot generation line. Despite the location in Merced County, the energy will not serve local residents. Instead, it will be transmitted to San José Clean Energy customers under the terms of a February 13, 2024 agreement approved by the San José City Council.
“PG&E serves Los Banos, not SJCE, so none of the energy stored or generated will directly benefit our community,” said Mary Henness, a local resident who has been tracking the project.
The Pitch: Green Energy and Grid Reliability
Longroad Energy and project supporters argue that Zeta will support California’s renewable energy goals while enhancing grid reliability. The project was fast-tracked in part due to its clean energy profile, battery storage capacity, and use of fallowed land already deemed unsuitable for agriculture.
Developers note that the land has been under a restrictive non-irrigation covenant with the San Luis Water District (SLWD) since 2011 due to drainage and salinity issues, and they cite this as a responsible use of otherwise idle land. The facility is also expected to comply with fire safety standards including UL9540 certification and NFPA 68/69 codes.
Community Concerns
For many residents of Los Banos, the most frustrating part of the Zeta Project has been the lack of transparency. Several community members say they were completely unaware of the project until it was nearly approved, with little to no public outreach beyond the minimum legal requirements. “This whole project is being done stealthily with no public notice to anybody,” said Mary Henness. “If it hadn’t been for someone in our group who read about a similar battery fire in Moss Landing, we wouldn’t have known anything about this one.”
Despite the optimistic framing, many residents feel blindsided. Critics say the project raises legitimate safety, environmental, and equity issues that have not been properly addressed. While residents criticized Merced County’s public notification process, county officials stated they followed state regulations for notification
Fire Risk and Emergency Access
One of the most pressing concerns is fire. BESS systems, especially lithium-ion based, are susceptible to thermal runaway fires. These fires are difficult to extinguish and can emit toxic gases.
“Our firefighters here in Los Banos and Merced County do not have the proper training or equipment for this kind of emergency,” Henness said.
Adding to this worry is the condition of Poleline Road, the primary access to the project site.
“It’s a county road that’s never been taken care of. If there’s a fire, how are first responders going to reach the site in time?”
While the Conditional Use Permit requires a Fire Protection Plan (Mitigation Measure HAZ-1), and the developer has committed to building new on-site access roads that meet county standards, it does not require any improvements to existing public roads like Poleline Road, which remains in poor condition.
Water Access and Landscaping
PG&E has requested landscaping on the project site, but there’s no confirmed source of water to support it. The SLWD has explicitly stated it will not provide water for the project and that the property cannot be irrigated due to existing covenants.
“Nobody’s running a pipeline out there. There’s a restrictive water easement on the property. So where’s the water going to come from to maintain landscaping or fight fires?”
According to SLWD District Engineer Steven Stadler, the project does not have a Water Management Agreement, and SLWD has declined to be a water supplier.
Proximity to Schools and Residents
Charleston Elementary School lies roughly 10 miles from the site. While the environmental review did not mention the school, Henness argues that the risk of toxic exposure from potential fires should be taken more seriously given how far smoke plumes can travel.
“If a thermal runaway fire occurs and the wind changes, 10 miles is nothing.”
Who Benefits?
Many locals feel that they bear the risk while another city reaps the reward. With energy from the Zeta project contracted to SJCE, Los Banos and surrounding communities won’t see reduced rates or direct electricity access.
“All that power will not benefit Los Banos or the surrounding areas,” said Henness. “It’s being generated here, but none of it is staying here.”
This claim is supported by the City of San José’s public agreement with Zeta Solar, LLC, confirming a 20-year purchase of energy and capacity rights.
Land Ownership and Political Connections
The project is located on land owned by AKT Development, a company founded by Angelo Tsakopoulos. His daughter, Eleni Kounalakis, is the current Lieutenant Governor of California. This familial connection has raised community concerns about potential conflicts of interest.
“The owner’s daughter is the Lieutenant Governor. We consider that to be a big conflict of interest,” said Henness.
While there is no evidence that Lieutenant Governor Kounalakis was directly involved in the approval or facilitation of the Zeta project, the intersection between her public role and her family’s private business interests has fueled questions about ethical oversight and transparency.
The development of this site could financially benefit AKT through lease agreements or land valuation increases, all while the public remains largely uninformed.
Final Thoughts
Los Banos Mayor Mike Amabile weighed in on the controversy.
“First and foremost, I believe that transparency must be the foundation of any project—especially one of this size and potential impact. The question isn’t just about clean energy or economics. It’s about the right of our residents to know what’s happening in their backyard and to have a voice in that process. I share the community’s concern that there was not adequate public outreach by the developer. Meeting only the legal minimum for notification is not the same as genuine engagement.
I strongly support clean energy, but I also believe in doing it the right way—with safety and public trust at the forefront. I understand the fire risk associated with battery storage systems, especially those using older lithium-ion technology. It’s my understanding that the newer generation of batteries being proposed in this project are significantly safer, with built-in fire suppression and thermal runaway protection.
The Moss Landing incident was serious, but it involved older systems with multiple batteries per container and limited spacing between units. Smaller, independent battery units with proper spacing and containment are far less volatile. That distinction needs to be communicated clearly to the public.
I appreciate the community’s vigilance and share many of their concerns. As Mayor, I will continue to push for transparency, accountability, and safety—no matter the project or the developer.”
Though the Zeta Project aligns with California’s broader clean energy initiatives, questions about transparency, local safety, and equitable benefits persist. For residents like Henness and her group, the battle isn’t against renewable energy — it’s about ensuring it’s done right.
“Even if it does get built, we want it to be as safe as possible. But people should know what’s happening in their backyard.”
