Calpine sells 2 gas-fired plants to Starwood Energy
Starwood officials say the deal with Calpine is “unqiue,” allowing the company to grow its gas generation portfolio while at the same time maintaining a lower risk profile. The company said the two-plant portfolio is fully contracted with “various counterparties,” with a weighted average life of nearly five years.
Starwood Energy CEO Himanshu Saxena said the deal “represents a combination of scale and risk-mitigation, and is an excellent complement to our existing generation investments.”
The companies say the deal is subject to regulatory approval and is expected to close in the middle of this year.
At the same time, Calpine is continuing to strategically grow its fleet and last month added 828 MW of generation in the Mid-Atlantic when its combined cycle York 2 plant in Pennsylvania, in the PJM market, came online.
According to Calpine, the Garrison plant is a 309 MW combined-cycle facility “built to enhance reliability for Delaware and the regional power market.” It began operating in 2015 and the plant site could accommodate another similar unit, “should market conditions warrant,” according to the company.