New Jersey-based NRG Energy has announced plans to develop some 10,500 MW of new capacity over the next decade with a total investment of $16 billion.
As part of the programme the company anticipates developing almost 8,000 MW of new baseload capacity, including 2,700 MW of nuclear generation along with 2,500 MW of intermediate and peaking capacity.
The plans will also reduce the carbon intensity of NRG’s baseload fleet by 20-25%, says the company, which operates in Texas, the Northeast, West, and South Central US. David Crane, NRG’s president and chief executive officer, commented: “Our proposed mix of baseload plants, involving two nuclear units, three gasified coal units, two traditional pulverized coal units with full back-end controls, at least one modern combined cycle plant and at least two wind farms, will substantially reduce the carbon intensity of NRG’s existing baseload fleet.”
Crane added: “NRG is strategically located in domestic markets with high and growing demand for power and an over-reliance on expensive natural gas for their power generation.”
The NRG northeast redevelopment plan calls for the addition of 2,250 MW of new base load capacity using IGCC technology and 840 MW of new, dual-fuel oil and gas-fired intermediate and peaking capacity to serve particularly high-demand, capacity constrained areas, such as New York City and southwest Connecticut. As part of this plan, NRG expects to retire 968 MW of less efficient, higher emitting units.
In Texas the company intends to construct a 2,700 MW nuclear station at an estimated cost of $5.2 billion at the existing South Texas Project (STP) nuclear facility along with around 800 MW of coal-fired capacity. Some 500 MW of gas-fired peaking and intermediate capacity to serve particularly high-demand, capacity constrained areas around Houston is also planned. A further 1,000 MW of new base load capacity is also planned for the South Central region.
NRG intends to contract at least 70% of its new output through power purchase agreements, bilateral contracts or hedges with financial firms.
The announcement followed a deal to acquire wind farm developers to acquire privately held Padoma Wind Power for an undisclosed sum.
Padoma currently has three projects under active development independently, in addition to a pipeline of over a dozen wind projects which it is developing in conjunction with third parties. The projects under development are in nine states including California and Texas and are expected to bring another 1,000 MW of new wind-based generation to market by 2015.
The transaction will be funded with cash on hand and is expected to close by the end of July.