Islip extends moratorium on battery storage facilities, halting Hauppauge project

The moratorium was set to expire at the end of the month.

Kevin Vesey

Sep 16, 2025, 10:09 AM

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The Islip Town Board has voted unanimously to extend its moratorium on battery energy storage systems (BESS) for another year, effectively halting plans for a proposed facility in Hauppauge.
The moratorium was set to expire at the end of the month. The extension means that any new proposals for battery storage projects — including the 79-megawatt facility planned for an abandoned site on Rabro Drive — will remain on hold.
The proposed Hauppauge site has drawn significant backlash from local residents, many of whom raised concerns about the safety of large-scale battery storage systems.
“A fire or explosion here would not stay contained,” said Hauppauge resident Gail Panaro during the town board meeting. “It could ripple through our community, endangering lives, property, and infrastructure.”
The location of the proposed facility — near a school, a church, and multiple homes — has amplified public unease. Members of the Hauppauge Fire Department and a local school board member also spoke out against the project, citing potential risks to nearby children and families.
“New technologies are great,” said Marcus Habeeb, another Hauppauge resident. “But Hauppauge and the Town of Islip should not be the guinea pig for such technology.”
Despite the opposition, some environmental advocates urged the town to lift the ban, arguing that modern battery storage systems are both safe and essential for Long Island’s renewable energy goals.
“The failure rate has dropped 98% from 2018 to 2024,” said Melissa Parrott, of Renewable Energy Long Island. “Lessons learned from early failures have been incorporated into the latest designs and best practices.”
Lucia Yu, a representative from Key Capture Energy — the company behind the proposed Hauppauge facility — also emphasized the project’s economic and environmental benefits.
“Beyond providing economic benefits for the town,” Yu said, “this project will help keep electric bills from rising.”
Islip is one of seven towns on Long Island that have active moratoriums on battery energy storage systems. Others include North Hempstead, Hempstead, Oyster Bay, Smithtown, Babylon and Southold.
Five towns — Brookhaven, Riverhead, Southampton, East Hampton and Huntington — currently have no such restrictions in place.
Key Capture Energy issued a statement following the hearing.
“KCE is disappointed with the Town Board’s decision to extend the moratorium. New York’s new fire code provides Islip with all the information it needs to be confident this project will be built to the highest safety standards while keeping the lights on for households and businesses. KCE remains committed to bringing this project online and we look forward to sitting down with the Fire Department to address their concerns," a spokesperson wrote.