Gas

Calpine Corp. sells two gas-fired plants to Starwood equity firm

Private equity firm Starwood Energy Group Global LLC is buying two gas-fired power plants from Calpine Corp.

Starwood is acquiring the 325-MW combined cycle Garrison Energy Center in Delaware and the 503-MW RockGen Energy Center peaker facility in Wisconsin. No financial terms were disclosed.

Garrison was one of Calpine’s newer power projects and achieved commercial operation in 2015. It is a dual fuel facility within the PJM Interconnection.

RockGen is a simple-cycle dual fuel plant built in 2001 and dispatches into MISO Zone 2. It’s portfolio is full contracted for nearly five years.

“This unique transaction is the culmination of a significant amount of work with the Calpine team to craft a deal that would achieve multiple objectives. For Starwood, the portfolio represents a combination of scale and risk-mitigation, and is an excellent complement to our existing generation investments,” said Himanshu Saxena, CEO of Starwood Energy. 

Starwood Energy has executed more than $7 billion in transactions. Calpine is the nation’s largest producer of gas-fired generation for competitive markets, with more than 26,000 MW of capacity.

The transaction is subject to customary regulatory approvals and is expected to close in mid-2019. King & Spalding LLP served as legal counsel to Starwood.