NRG Canal 3 Project Clears ISO-NE Capacity Auction
333 MW Peaker will provide flexible, fast-start capacity
PRINCETON, N.J.--(BUSINESS WIRE)--Feb. 11, 2016--
NRG Energy, Inc. (NYSE:NRG) is pleased to announce its Canal 3
development project, a 333 MW gas turbine peaker, cleared the ISO-New
England tenth forward capacity auction at a price of $7.03/Kw-month.
Canal 3’s selection demonstrates the value of new fast-start, flexible
power generation in a region experiencing multiple facility retirements.
Canal 3 is scheduled to go online in 2019 on Cape Cod, with capital
investment beginning in late 2017 and significant development
expenditures in 2018. The unit will leverage existing infrastructure at
the NRG Canal Station in Sandwich, Massachusetts. NRG and its affiliates
also cleared the rest of its existing New England fleet at the same
$7.03/Kw-mo (about $230.50/MW-day) clearing price for the delivery
period June 2019-May 2020.
For the new Canal unit, NRG elected to receive the auction clearing
price for seven capacity commitment periods, which means that the new
unit will receive the FCA10 clearing price for seven years, with years
2-7 adjusted for inflation. This is an important capacity market feature
that is helping to bring new generation resources online.
According to NRG EVP, Development John Chillemi, “We’re especially
pleased that our new Canal 3 project cleared the auction, allowing us to
provide valuable generation to the region and continue our robust fleet
Canal 3 will primarily use natural gas to provide enough generation to
power 264,000 average-sized homes. As a “peaking plant,” Canal 3 will
operate mainly during peak demand periods or in the event of unexpected
outages. Additionally, Canal 3’s high-efficiency gas turbine will be
capable of starting and reaching full capacity in 10 minutes.
In addition to the Canal 3 project, NRG is permitting and building a 1.5
MW community solar project, also on the existing footprint of the Canal
NRG is leading a customer-driven change in the U.S. energy industry by
delivering cleaner and smarter energy choices, while building on the
strength of the nation’s largest and most diverse competitive power
portfolio. A Fortune 200 company, we create value through reliable and
efficient conventional generation while driving innovation in solar and
renewable power, electric vehicle ecosystems, carbon capture technology
and customer-centric energy solutions. Our retail electricity providers
serve almost 3 million residential and commercial customers throughout
the country. More information is available at www.nrg.com.
Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160211006268/en/
Source: NRG Energy, Inc.
David Gaier, 609-524-4529
Lindsey Puchyr, 609-524-4527