NRG Energy will double its electricity generation by acquiring assets from LS Power Equity Advisors as the Houston-based power producer looks to meet what CEO Larry Coben calls a “demand supercycle.”
Through the $12 billion cash-and-stock acquisition announced Monday, NRG will add 18 gas-fired power plants with a total capacity of about 13,000 megawatts. The added natural gas generation builds on NRG’s existing capacity in Texas and the Northeast.
Data centers to run artificial intelligence programs, manufacturing and the electrification of homes and cars are pushing up demand, especially on the two power grids where NRG’s bigger portfolio will largely function.
The Electric Reliability Council of Texas (ERCOT), which operates the grid for most of Texas, has forecast that peak demand will rise from 85 gigawatts in 2024 to as high as 218 gigawatts by 2031. Each gigawatt powers roughly 800,000 households.
