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Released May 11, 2016 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Dominion Virginia Power (Richmond, Virginia) is moving forward with plans to build a third billion-dollar-plus natural gas combined cycle (NGCC) generator in Virginia after the Virginia Corporation Commission (Richmond, Virginia) approved the utility's proposal to build the Greensville County Power Station. With an estimated cost of $1.3 billion, the Greensville plant will be built very close to the utility's recently finished Brunswick County Energy Center. The Greensville project will have generating capacity of 1,588 megawatts (MW). It is scheduled to be operating by yearend 2018.
The nearby Brunswick power plant, a 1,358-MW project also built at a cost of about $1.3 billion, began generating electricity last month. A unit of Fluor Incorporated (NYSE:FLR) (Irving, Texas), provided engineering, procurement & construction (EPC) services for the Brunswick plant, and Fluor will provide EPC services for the Greensville station.
In late 2014, Dominion Virginia Power finished construction of its first billion-dollar-plus NGCC, Warren County Energy Center, located in northern Virginia. That plant, at 1,280 MW, cost an estimated $1.3 billion to build. A unit of Zachry (San Antonio, Texas) provided EPC services for the Warren County plant.
Dominion Virginia Power, a unit of Dominion Incorporated (NYSE:D) (Richmond, Virginia) is investing heavily in NGCCs, as well as transmission lines, to meet rising electric demand and to offset lost generation from generators that are being retired due to tougher environmental regulation. For more on Dominion's scheduled capital investments, see February 24, 2016, article - Virginia Electric Utility Sets Five-Year, $9.5 Billion Capital Budget and April 23, 2015, article - Dominion Unveils Plans for Another $1 Billion-plus NGCC.
News reports have said electric demand is growing as fast as 9.5% in some parts of Dominion Virginia Power's service area. By contrast, the national average for electric demand growth is about 1%. It is expected that all three of the utility's new NGCCs will be fueled, to some degree, by natural gas extracted from the Marcellus Shale.
In addition to the estimated 1,000 jobs created during the construction phase of the Greensville NGCC, the utility also estimated the plant would, over its lifetime, save customers a bundle compared to the cost of buying power on the wholesale market.
"We are pleased that the SCC has granted approval for the Greensville Power Station," Paul Koonce, chief executive officer of Dominion Generation Group, said in a statement March 29 following regulatory approval to build that project. "This project will ultimately bring low cost, reliable electricity to our customers while saving them $2 billion over the life of the plants' operation, in addition to providing a major economic impact and good paying jobs for Southside Virginia."
Using the same methodology, the utility estimated the recently completed Brunswick plant will save customers between $924 million and $1.5 billion over its expected life.
The Greensville plant will straddle the Greensville-Brunswick county line. Dominion Virginia Power could add solar generation to the Brunswick and Greensville sites, though the utility said it is not planning to do that right now.
"Dominion Virginia Power is one of a very few utilities facing electric demand growth rates that are multiples of the U.S. average," said Britt Burt, Industrial Info's vice president of global research for the Power Industry. "That utility's need to retire existing coal-fired generation due to tougher environmental regulations is a factor that complicates planning. But its plans to transition to a cleaner energy footprint appear to be going well."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook-Twitter-LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The nearby Brunswick power plant, a 1,358-MW project also built at a cost of about $1.3 billion, began generating electricity last month. A unit of Fluor Incorporated (NYSE:FLR) (Irving, Texas), provided engineering, procurement & construction (EPC) services for the Brunswick plant, and Fluor will provide EPC services for the Greensville station.
In late 2014, Dominion Virginia Power finished construction of its first billion-dollar-plus NGCC, Warren County Energy Center, located in northern Virginia. That plant, at 1,280 MW, cost an estimated $1.3 billion to build. A unit of Zachry (San Antonio, Texas) provided EPC services for the Warren County plant.
Dominion Virginia Power, a unit of Dominion Incorporated (NYSE:D) (Richmond, Virginia) is investing heavily in NGCCs, as well as transmission lines, to meet rising electric demand and to offset lost generation from generators that are being retired due to tougher environmental regulation. For more on Dominion's scheduled capital investments, see February 24, 2016, article - Virginia Electric Utility Sets Five-Year, $9.5 Billion Capital Budget and April 23, 2015, article - Dominion Unveils Plans for Another $1 Billion-plus NGCC.
News reports have said electric demand is growing as fast as 9.5% in some parts of Dominion Virginia Power's service area. By contrast, the national average for electric demand growth is about 1%. It is expected that all three of the utility's new NGCCs will be fueled, to some degree, by natural gas extracted from the Marcellus Shale.
In addition to the estimated 1,000 jobs created during the construction phase of the Greensville NGCC, the utility also estimated the plant would, over its lifetime, save customers a bundle compared to the cost of buying power on the wholesale market.
"We are pleased that the SCC has granted approval for the Greensville Power Station," Paul Koonce, chief executive officer of Dominion Generation Group, said in a statement March 29 following regulatory approval to build that project. "This project will ultimately bring low cost, reliable electricity to our customers while saving them $2 billion over the life of the plants' operation, in addition to providing a major economic impact and good paying jobs for Southside Virginia."
Using the same methodology, the utility estimated the recently completed Brunswick plant will save customers between $924 million and $1.5 billion over its expected life.
The Greensville plant will straddle the Greensville-Brunswick county line. Dominion Virginia Power could add solar generation to the Brunswick and Greensville sites, though the utility said it is not planning to do that right now.
"Dominion Virginia Power is one of a very few utilities facing electric demand growth rates that are multiples of the U.S. average," said Britt Burt, Industrial Info's vice president of global research for the Power Industry. "That utility's need to retire existing coal-fired generation due to tougher environmental regulations is a factor that complicates planning. But its plans to transition to a cleaner energy footprint appear to be going well."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook-Twitter-LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
