A combined-cycle power plant. (Source: Shutterstock)
Shell (SHEL) strengthened its position in the New England electricity market with an agreement to buy a power plant near Providence, Rhode Island.
Shell Energy North America (SENA), a Shell subsidiary, signed an agreement for a 100% equity stake in RISEC Holdings, which owns the 609-megawatt, two-unit, combined-cycle gas turbine plant, Shell announced Oct. 23.
According to the company, the deal secures long-term supply and capacity offtake for Shell in the Independent System Operator New England (ISO New England) power market, where Shell’s North American subsidiary has held a contract with RISEC for 100% of the plant's energy offtake since 2019.
"Shell has had a successful integrated gas and power business in the growing ISO New England market for over 20 years, and this acquisition secures valuable trading opportunities by guaranteeing SENA's position in the market," said Huibert Vigeveno, Shell downstream, renewables & energy solutions director.
A combined cycle power plant uses gas burners to spin turbines for electricity, and then uses the heat exhaust to create steam to drive steam turbines. The falling cost of combined cycle generation has kept the cost of gas-fired generation well below the cost of wind and solar generation, the U.S. Energy Information Administration reported Oct. 23.
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