NRG Canal 3 Project Clears ISO-NE Capacity Auction
February 11 2016 - 2:00PM
Business Wire
333 MW Peaker will provide flexible, fast-start
capacity
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 modernization program.”
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 Station.
About NRG
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.
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