NRG Energy's Carlsbad Energy Center Project has received an approval recommendation from the California Energy Commission (CEC) staff in the staff's Final Staff Assessment.

The approval is expected to advance modernization plans for NRG’s Encina power station in Carlsbad, California. NRG will replace three existing steam boiler units with a new 558MW plant that would enhance the facility’s overall environmental performance and be able to provide electricity to approximately 450,000 homes.

The CEC’s Final Staff Assessment comes on the heels of the San Diego Air Pollution Control District’s August release of its Final Determination of Compliance, in which the Air District concluded that the Carlsbad Energy Center Project will meet all ambient air quality standards and achieve public health goals.

David Crane, president and CEO of NRG Energy, said: “We appreciate the support we’ve received from the Energy Commission and the Air District, and their recognition of the value our Carlsbad Energy Center Project will bring to the San Diego region by helping to meet growing energy demand.

“The new facility not only will provide rapid response to peak demand periods, such as warmer summer days, but also will support the integration of renewable, intermittent energy resources, such as solar and wind, that are being added to the California grid.”

The Carlsbad energy center project is expected to produce fewer emissions per megawatt generated; eliminate the need for over 200 million gallons per day of permitted ocean water intake for cooling; and reduce Encina power station’s potable water use. In addition to the environmental benefits, the new power plant will increase the net output of Encina power station by more than 200 MW.

According to the Final Staff Assessment, CEC staff concluded that the Carlsbad energy center project would comply with all applicable laws, ordinances, regulations and standards.

Encina power station has five steam generating units and one peaking combustion turbine. The proposed modernization would replace the three oldest steam generating units with a power plant. Two generating units, built in 1974, will continue to operate as needed to support regional demand.

The Carlsbad energy center project will use air-cooled condensers instead of ocean water for its cooling requirements, reducing intake from the adjacent Agua Hedionda Lagoon.

The permitting process will continue into spring 2010. Pending issuance of necessary permits and contingent on securing a long-term sales contract for the power, NRG anticipates bringing the facility online by 2013.