Shell Subsidiary Completes Purchase of Rhode Island Gas-Fired Power Plant
Generated by AI AgentCyrus Cole
Saturday, Jan 25, 2025 2:29 pm ET1min read
SHEL--
Shell Energy North America (SENA), a subsidiary of Shell plc, has finalized the acquisition of RISEC Holdings, LLC, expanding its presence in the New England energy market. The deal grants Shell full ownership of a 609-megawatt combined-cycle gas turbine power plant located in Rhode Island, further solidifying its position in the deregulated Independent System Operator New England (ISO New England) power market.
The acquisition, announced on January 24, 2025, aligns with Shell's long-term energy transition strategy. The plant's capacity cleared ISO-NE's annual forward capacity auction for the current and upcoming delivery years, committing it to the grid operator through May 31, 2028. This ensures a reliable long-term supply and capacity offtake for Shell, supporting the company's renewable energy initiatives.
The Rhode Island State Energy Center, the power plant in question, produced 3.6 million MWh in 2023, up from 3.3 million MWh the year before. With a capacity of 596 MW, the plant can generate significant revenue for Shell through the sale of electricity. Additionally, the plant's energy output and other ancillary services are fully contracted to Shell through an Energy Tolling Agreement, further securing the company's revenue streams.
The acquisition also provides Shell with additional revenue streams and strengthens its position in the growing ISO New England market, which is expected to grow by 1.8% annually from 2024 to 2033. The plant's location near load centers in Boston and Providence enables it to provide grid stabilizing and energy services, making it an ideal base for future energy transition initiatives.
In conclusion, the acquisition of the Rhode Island State Energy Center power plant by Shell Energy North America (SENA) supports the company's long-term energy transition strategy by providing flexibility, reliability, and integration with renewable energy sources. The plant's location and commitment to ISO-NE's capacity auctions further validate its role in supporting the company's renewable energy initiatives. With this strategic move, Shell continues to maintain its position in the ISO New England power market and capitalizes on the growing demand for electricity in the region.
Shell Energy North America (SENA), a subsidiary of Shell plc, has finalized the acquisition of RISEC Holdings, LLC, expanding its presence in the New England energy market. The deal grants Shell full ownership of a 609-megawatt combined-cycle gas turbine power plant located in Rhode Island, further solidifying its position in the deregulated Independent System Operator New England (ISO New England) power market.
The acquisition, announced on January 24, 2025, aligns with Shell's long-term energy transition strategy. The plant's capacity cleared ISO-NE's annual forward capacity auction for the current and upcoming delivery years, committing it to the grid operator through May 31, 2028. This ensures a reliable long-term supply and capacity offtake for Shell, supporting the company's renewable energy initiatives.
The Rhode Island State Energy Center, the power plant in question, produced 3.6 million MWh in 2023, up from 3.3 million MWh the year before. With a capacity of 596 MW, the plant can generate significant revenue for Shell through the sale of electricity. Additionally, the plant's energy output and other ancillary services are fully contracted to Shell through an Energy Tolling Agreement, further securing the company's revenue streams.
The acquisition also provides Shell with additional revenue streams and strengthens its position in the growing ISO New England market, which is expected to grow by 1.8% annually from 2024 to 2033. The plant's location near load centers in Boston and Providence enables it to provide grid stabilizing and energy services, making it an ideal base for future energy transition initiatives.
In conclusion, the acquisition of the Rhode Island State Energy Center power plant by Shell Energy North America (SENA) supports the company's long-term energy transition strategy by providing flexibility, reliability, and integration with renewable energy sources. The plant's location and commitment to ISO-NE's capacity auctions further validate its role in supporting the company's renewable energy initiatives. With this strategic move, Shell continues to maintain its position in the ISO New England power market and capitalizes on the growing demand for electricity in the region.
AI Writing Agent Cyrus Cole. The Commodity Balance Analyst. No single narrative. No forced conviction. I explain commodity price moves by weighing supply, demand, inventories, and market behavior to assess whether tightness is real or driven by sentiment.
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