Talen Buys Three Gas-Fired Power Plants in PJM Interconnection

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Talen Energy's purchase of three plants in the Marcellus and Utica shales gives it a bigger footprint in one of the hottest U.S. spots for natural gas.

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Acquisition Bolsters Role in PJM

Talen Energy Corporation (Houston, Texas) is picking up about 2.6 gigawatts (GW) of power generation from its recently announced acquisition of three natural gas-fired power plants from a subsidiary of Energy Capital Partners (Summit, New Jersey). The $3.45 billion deal expands Talen's presence in the westernmost areas of the PJM Interconnection. Industrial Info is tracking more than $970 million worth of active and proposed projects from Talen.

Talen said two of the facilities--the Lawrenceburg Power Station in Lawrenceburg, Indiana, and the Waterford Power Station in Waterford, Ohio--are "highly efficient and modern" combined-cycle, gas-turbine (CCGT) plants with capacity factors greater than 80%. Lawrenceburg and Waterford have design capacities of 1,232 and 834 megawatts (MW), respectively.

The Darby Electric Generating Station in Mount Sterling, Ohio, is a natural gas-fired peaking unit, which generates power only during peak electricity demand (such as periods of higher-than-average heat or cold) to supplement baseload power. Talen said the plant, which has a design capacity of 510 MW, can provide "attractive commercial flexibility."

All three plants draw their natural gas feedstock from the Marcellus and Utica shale formations. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can learn more about these facilities--including capacities, related projects and key contacts--from detailed profiles of Darby, Lawrenceburg and Waterford.

"This acquisition further diversifies Talen's generation portfolio by adding both baseload capacity and strong cash flow contribution and enhances our presence in the western PJM market, which has significant data center tailwinds," said Mac McFarland, the chief executive officer of Talen, in a press release.

The rapid growth of the U.S. data-center market has fueled the need more power generation nationwide. In Ohio and Indiana alone, Industrial Info is tracking nearly $135 billion worth of active and proposed data-center projects. Subscribers can learn more from a detailed list of project reports.

By the Numbers

• 2.6 GW: What Talen expects to add to its portfolio through its acquisitions of three gas-fired power plants
• More than $970 million: Total investment value of existing projects from Talen
• $135 billion: Total investment value of active and proposed data-center projects in Ohio and Indiana

Lights to Stay On at Coal Plants

Talen already is responsible for more than 13 GW of U.S.-based power generation, mostly in the PJM service area. Its active projects include work at two coal-fired power plants that recently had their retirement dates pushed back from May 2025 to May 2029.

Last year, the U.S. Federal Energy Regulatory Commission (FERC) approved a "reliability-must-run" (RMR) agreement that will keep units 1 and 2 at the Brandon Shores Power Station and units 3 and 4 at the H.A. Wagner Generating Station, both in Baltimore, Maryland, operational an additional four years. Each of the Brandon Shore units provide 685 MW of capacity, while each of the H.A. Wagner units provide 359 MW.

Talen said in a press release that the extensions are necessary to "maintain grid and transmission reliability in and around the City of Baltimore, until transmission upgrades to provide reliable power to the area from other sources are complete." Subscribers can read detailed profiles of the Brandon Shores and H.A. Wagner plants, and detailed on Unit 1 and Unit 2 at Brandon Shores and Unit 3 and Unit 4 at H.A. Wagner.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for active and proposed projects from Talen.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• Talen is getting another 2.6 GW of power generation from its purchase of three gas-fired plants.
• The three plants join 13 GW of existing, U.S.-based power generation from Talen.
• Two of Talen's coal-fired plants in Baltimore to stay open another four years.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).