NRG to add 2,000 MW of new US natgas and solar generation in 2013

Wed Feb 27, 2013 11:44am EST

Feb 27 (Reuters) - NRG Energy Inc, the No. 2 U.S. power generating company, said on Wednesday it will add over 2,000 megawatts (MW) of natural gas and solar power generating capacity in 2013.

"In 2013, we expect over 2,000 MW of utility scale conventional and solar generation to come on line," NRG CEO David Crane told analysts on a call after the company released its fourth quarter earnings.

The new natural gas projects are the 550-MW El Segundo combined cycle plant and the 720-MW Marsh Landing peaking plant in California, and the 75-MW WA Parish peaking plant in Texas.

On the solar front, NRG expects units at several projects to enter service, including at Ivanpah in California, Agua Caliente in Arizona and the California Valley Solar Ranch in California.

Crane said the new projects "should generate over $500 million in incremental EBITDA (earnings before the deduction of interest, taxes and amortization expenses), almost all of which is fully contracted."

Some of the solar projects are partnerships that NRG owns a partial share.

The 377-MW Ivanpah is a partnership between NRG, Google and BrightSource being built by Bechtel. The power from Ivanpah will be sold to units of California power companies PG&E Corp and Edison International, according to the Ivanpah website.

The 290-MW Agua Caliente is a partnership between NRG and Berkshire Hathaway Inc's MidAmerican Energy being developed by FirstSolar Inc. The power from Agua Caliente will be sold to PG&E, according to the Agua Caliente website.

The power from NRG's 250-MW California Valley Solar Ranch will be sold to PG&E, according to NRG's website.

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