PJM Flexibility
Capital Power buys 2.2GW from LS Power
𝗪𝗵𝗼 𝗱𝗼𝗲𝘀𝗻’𝘁 𝘄𝗮𝗻𝘁 “𝗳𝗹𝗲𝘅𝗶𝗯𝗹𝗲 𝗽𝗼𝘄𝗲𝗿” 𝗮𝘀𝘀𝗲𝘁𝘀 𝗶𝗻 𝗣𝗝𝗠?
Capital Power just bought 𝟮.𝟮𝗚𝗪 𝗼𝗳 𝗳𝗹𝗲𝘅𝗶𝗯𝗹𝗲 (𝗴𝗮𝘀 𝗳𝗶𝗿𝗲𝗱) 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗣𝗝𝗠 from LS Power Equity Advisors 𝗳𝗼𝗿 𝗨𝗦$𝟮.𝟮 𝗯𝗶𝗹𝗹𝗶𝗼𝗻. The deal included 1,124 MW of CCGT at Hummel Station and 1,023 MW of peaking capacity at Rolling Hills (see below).
With data center load surging, deals for flexible assets keep coming (𝘵𝘩𝘦 𝘵𝘦𝘢𝘮 𝘸𝘪𝘭𝘭 𝘩𝘢𝘷𝘦 𝘭𝘰𝘵𝘴 𝘵𝘰 𝘴𝘢𝘺 𝘰𝘯 𝘵𝘩𝘦 𝘲𝘶𝘢𝘭𝘪𝘵𝘺, 𝘷𝘢𝘭𝘶𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘰𝘶𝘵𝘭𝘰𝘰𝘬 𝘧𝘰𝘳 𝘵𝘩𝘦𝘴𝘦 𝘢𝘴𝘴𝘦𝘵𝘴).
But 𝗛𝘂𝗺𝗺𝗲𝗹 𝗦𝘁𝗮𝘁𝗶𝗼𝗻 𝗰𝗮𝘂𝗴𝗵𝘁 𝗺𝘆 𝗮𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗼𝘁𝗵𝗲𝗿 𝗿𝗲𝗮𝘀𝗼𝗻𝘀. It was 𝗯𝘂𝗶𝗹𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗳𝗼𝗿𝗺𝗲𝗿 𝘀𝗶𝘁𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗿𝗲𝘁𝗶𝗿𝗲𝗱 𝟰𝟬𝟬𝗠𝗪 𝗦𝘂𝗻𝗱𝗯𝘂𝗿𝘆 𝗰𝗼𝗮𝗹-𝗳𝗶𝗿𝗲𝗱 𝗽𝗼𝘄𝗲𝗿 𝗽𝗹𝗮𝗻𝘁. And like Homer City, 𝗿𝗲𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗶𝗻𝗴 𝘁𝗵𝗲 𝘀𝗶𝘁𝗲 𝗮𝘀 𝗮 𝗴𝗮𝘀 𝗳𝗮𝗰𝗶𝗹𝗶𝘁𝘆 𝗹𝗲𝗱 𝘁𝗼 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗱𝗼𝘂𝗯𝗹𝗲 𝘁𝗵𝗲 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗰𝗮𝗽𝗮𝗰𝗶𝘁𝘆 at the facility (from 400MW to 1,124MW).
I am left wondering: As coal fired generation heads into retirement, 𝗰𝗼𝘂𝗹𝗱 𝗰𝗼𝗮𝗹 𝘀𝗶𝘁𝗲𝘀 𝗯𝗲 𝘁𝗵𝗲 𝗿𝗲𝗮𝗹 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗳𝗼𝗿 𝗱𝗶𝘀𝗽𝗮𝘁𝗰𝗵𝗮𝗯𝗹𝗲 (𝗳𝗹𝗲𝘅𝗶𝗯𝗹𝗲) 𝗽𝗼𝘄𝗲𝗿 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝘀𝗼 𝗺𝗮𝗻𝘆 𝗶𝗻 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗮𝗿𝗲 𝘀𝗲𝗲𝗸𝗶𝗻𝗴 (𝗲𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗹𝘆 𝗶𝗳 𝗹𝗮𝗻𝗱 𝗳𝗼𝗿 𝗹𝗼𝗮𝗱 𝗰𝗼𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲)?
What do you think? 𝗛𝗼𝘄 𝗯𝗶𝗴 𝗮 𝗿𝗼𝗹𝗲 𝘄𝗶𝗹𝗹 𝗿𝗲𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗼𝗳 𝗰𝗼𝗮𝗹-𝗳𝗶𝗿𝗲𝗱 𝘀𝗶𝘁𝗲𝘀 𝗽𝗹𝗮𝘆 𝗶𝗻 𝗺𝗲𝗲𝘁𝗶𝗻𝗴 𝗨𝗦 𝗹𝗼𝗮𝗱 𝗴𝗿𝗼𝘄𝘁𝗵 𝗼𝘃𝗲𝗿 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗱𝗲𝗰𝗮𝗱𝗲?