NRG gas-fired peaker power plant clears ISO New England auction

NRG energy elp

NRG Energy said its Canal 3 development project, a 333 MW gas-fired peaker power plant, 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.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Latest Energy Jobs

View more Job Listings >>

Archived Articles

PennEnergy Articles
2008 | 2009 | 2010 | 2011 | 2012 | 2013

OGJ Articles
2011 | 2012 | 2013

OGFJ Articles
2011 | 2012 | 2013

Power Engineering Articles
2011 | 2012 | 2013

Power Engineering Intl Articles
2011 | 2012 | 2013

Utility Products Articles
2011 | 2012 | 2013

HydroWorld Articles
2011 | 2012 | 2013

COSPP Articles
2011 | 2012 | 2013

ELP Articles
2011 | 2012 | 2013