NRG Energy Inc.’s 333-MW gas turbine peaker project has cleared the ISO-New England 10th forward capacity auction (FCA10) at a price of $7.03/kilowatt-month.
The Canal 3 project is being developed at NRG Canal Station in Sandwich, Massachusetts. It’s scheduled to go online in 2019 in Cape Cod with capital investment beginning in late 2017 and significant development expenditures in 2018.
As a peaking plant, Canal 3 will operate primarily during peak demand periods or in the event of an unplanned outage, generating enough electriicty to power the equivalent of 264,000 average-sized homes. The plant’s high-efficiency gas turbine will be capable of starting and reaching full capacity in 10 minutes.
NRG has elected to receive the auction clearing price for seven capacity commitment periods, meaning the new Canal unit will receive the FCA10 clearing price for seven years, with years two through seven adjusted for inflation.
NRG and its affiliates also cleared the rest of its existing New England fleet at $7.03/kWm for the delivery period June 2019 through May 2020.