NRG Energy Expands Power Generation and Virtual Plant Programs

NRG Energy is expanding its power generation capacity while developing programs that reduce peak demand through technology and customer participation. Robert Gaudette became chief executive of NRG Energy at the end of April. He said the company is pursuing two approaches to address electricity needs from data centers and other large users.

Early this year NRG completed the purchase of 18 natural gas-fired power plants from LS Power for roughly $10 billion. The transaction nearly doubled the company's total generation capacity. 4 gigawatts of gas-fired turbines for data center projects. 5 gigawatts of gas-fired plants at three sites near Houston.

NRG is operating demand-response programs and virtual power plants that allow industrial and residential customers to reduce usage during peak periods. Participants receive smart thermostats and other devices in exchange for allowing limited control of their systems.

The company acquired the CPower demand-response business as part of the LS Power transaction. It also introduced a residential virtual power plant program through its Vivint and Reliant units. Gaudette said NRG achieved 200 megawatts of virtual power plant capacity last year, exceeding the original target of 20 megawatts.

The company recently announced plans to add more than 1 gigawatt of battery storage. NRG operates power plants in Texas, the Northeast, Midwest, and California. It forecasts an additional 2 gigawatts of expansion and efficiency projects in the Northeast and Midwest.