Gas in the Constellation

Deal for Calpine Points to Reliability and Scale Over Low-carbon

𝙒𝙝𝙖𝙩 𝙘𝙖𝙪𝙜𝙝𝙩 𝙢𝙮 𝙖𝙩𝙩𝙚𝙣𝙩𝙞𝙤𝙣? The bet on gas-fired generation implied by Constellation’s reported deal to buy Calpine for $30B.

𝙒𝙝𝙮 𝙞𝙩 𝙢𝙖𝙩𝙩𝙚𝙧𝙨? Gas-fired generation assets are attracting interest as demand for highly reliable, dispatchable power surges—driven primarily by data centers. Constellation’s current portfolio, heavily weighted toward nuclear (~66% of capacity and ~88% of projected 2025 generation), aligns perfectly with the criteria sought by data center developers: reliability, scale, and carbon-free power. This alignment underpinned the company's recent deal with Microsoft to restore Three Mile Island Unit 1.

Acquiring Calpine’s portfolio, predominantly composed of gas-fired assets (alongside geothermal, battery, and solar capacity), would transform gas from a minor player (<10% of current generation) to a major contributor within Constellation’s portfolio. This strategic shift highlights the growing prioritization of reliability and scale over purely low-carbon considerations.