NRG Energy Sells 4.9 GW of Gas-Fired Generation Assets

en.Wedoany.com Reported - On November 9, NRG Energy signed an asset purchase and sale agreement with energy infrastructure investment firm LS Power to sell six natural gas-fired generation facilities to LS Power for a cash consideration of USD 4 billion, involving total installed capacity of approximately 4.9 GW. The transaction is expected to close in the second quarter of 2027.

The six plants are located in New York, Connecticut, Rhode Island and Texas, covering three U.S. power markets. Specifically, they include the Jack County plant, Johnson County plant and R.W. Miller plant in Texas, the Ocean State plant in Rhode Island, the Ravenswood plant in New York, and the Wallingford plant in Connecticut.

Among them, the Ravenswood plant has an installed capacity of approximately 1,944 MW, making it the largest of the six assets; the Jack County plant has approximately 1,216 MW, the Ocean State plant approximately 592 MW, the R.W. Miller plant approximately 526 MW, the Wallingford plant approximately 322 MW, and the Johnson County plant approximately 269 MW. The six plants have a combined installed capacity of approximately 4,869 MW, covering combined cycle, simple cycle and steam turbine generation facilities.

For LS Power, this acquisition will expand its gas-fired generation asset footprint in the Texas and U.S. Northeast power markets. Together with the approximately 4.4 GW Constellation gas-fired generation asset acquisition already underway, LS Power's natural gas-fired installed capacity is expected to increase from approximately 2.2 GW currently to 11.5 GW. If both transactions close as planned, its overall generation portfolio will exceed 19 GW, covering natural gas, hydropower, wind, solar and battery storage.

NRG plans to use the proceeds from the sale for shareholder returns and debt adjustment. The company intends to arrange a total of USD 3 billion in share repurchases from 2026 to 2027, with a newly added USD 1 billion repurchase program expected to be launched by the end of the fourth quarter of 2026. After the asset sale is completed, the company also plans to repay an additional USD 2 billion in debt, bringing the total planned debt reduction for 2027 to USD 3 billion, with the remaining funds to be used for contracted growth projects or further debt repayment.

After completing the sale, NRG expects to still operate approximately 20 GW of installed generation capacity, with approximately 10 GW each in Texas and the PJM power market.