EnergyOnline
Services

RSS FEED

EnergyOnline.com rss

News

Duke Energy Announces Plans to Invest $30 Million to Install Two Battery Storage Projects in North Carolina

LCG, September 22, 2017--Duke Energy announced yesterday plans to invest $30 million in two new lithium-ion battery energy storage systems in North Carolina that are expected to be online in 2019. The two sites identified are the first of a larger company plan to deploy energy storage for the region, and further details regarding the two projects will be filed with the North Carolina Utilities Commission in early 2018.

Read more

GM Announces Power Purchase Agreements for Renewable Energy from New Wind Farms in Ohio and Illinois

LCG, September 21, 2017--General Motors announced Tuesday long-term power purchase agreements (PPAs) for renewable energy from two wind farms with a combined electric generating capacity of 200 MW. The two new PPAs will allow for all of GM's Ohio and Indiana manufacturing facilities to meet their electricity needs with 100 percent renewable energy by the end of 2018. Last September, GM announced last September plans to generate or source all electrical power for its 350 operations in 59 countries with 100 percent renewable energy by 2050.

Read more

Industry News

NRG Energy, Inc. Announces Transformation Plan to Simply and Strengthen Company

LCG, July 13, 2017--NRG Energy, Inc. (NRG) yesterday announced its "Transformation Plan" that is designed to significantly strengthen earnings and cost competitiveness, lower risk and volatility, and create significant shareholder value. The three-part, three-year plan is comprised of targets in the areas of operational and cost excellence, portfolio optimization, and capital structure and allocation enhancement.

NRG's President and CEO stated, "The transformation plan announced today demonstrates our commitment to simplify and strengthen the company to thrive through any market cycle. This plan is the result of a comprehensive review of our entire business by the board and management to simplify our business, right-size our portfolio and strengthen our balance sheet to create significant value for all our stakeholders."

Portfolio optimization includes targeting $2.5-$4.0 billion of asset sale net cash proceeds, including divestitures of 6 GWs of conventional generation and businesses and 50-100 percent of NRG's interest in NRG Yield and its renewables platform. In addition, as previously disclosed, NRG has entered into a restructuring support agreement to restructure and divest its ownership interest in GenOn Energy, Inc. (approximately 15 GW).

With respect to asset sales and the strategic alternatives process, NRG expects to announce signed agreements during the fourth quarter of 2017.

NRG's announcement stated that its Business Review Committee (BRC) unanimously recommended the Transformation Plan and it received the unanimous support and approval by the NRG Board of Directors and management.

The Chairman of the BRC stated, "The BRC, composed of five experienced and skillful directors and supported by two exceptionally qualified independent advisors, worked continuously for four months on a comprehensive review of NRG's operations and cost structure to dramatically improve NRG's financial performance and competitiveness. We developed an extremely detailed transformation plan that was unanimously approved by the BRC and the board. We targeted divesting businesses that represent over 60 percent of NRG's EBITDA to generate $2.5-4.0 billion of net proceeds and facilitate $13 billion of debt reduction. We targeted rapidly executing annual improvements with 72 percent of run rate annual benefits of $1.07 billion achieved in 2018, 92 percent in 2019, and 100 percent achieved in 2020. Finally, we established a rigorous capital allocation process to ensure NRG is financially flexible for years to come and to ensure NRG wisely allocates its expected 2017-2020 $6 billion of excess cash flow in 12-15 percent or better unlevered internal rate of return investments, or distributes the excess cash to our shareholders."

NRG's full Board of Directors will maintain oversight of the execution of the Transformation Plan with monthly updates provided to the Board's Finance and Risk Management Committee.
Copyright © 2017 LCG Consulting. All rights reserved. Terms and Copyright
Generator X
Generation and Transmission Planning and Optimization
UPLAN-NPM
The Locational Marginal Price Model (LMP) Network Power Model
UPLAN-ACE
Day Ahead and Real Time Market Simulation
PowerMax
Day-ahead and real-time portfolio revenue optimization
UPLAN-G
The Gas Procurement and Competitive Analysis System
PLATO
Database of Plants, Loads, Assets, Transmission...
MarketWatch
Monthly summary of prices, congestion and important events in ERCOT
CAISO CRR Auctions
Monthly Price and Congestion Forecasting Service