Texas-based utility Vistra Energy has struck a $1.9-billion deal for the acquisition of close to 2.6 GW worth of gas-powered generation capacity across several states from Lotus Infrastructure Partners.
The seven power plants are located in New York, California, New England and parts of the U.S. spanning 13 states serviced by transmission company PJM Interconnection, Reuters reported. The assets include five combined-cycle facilities and two combustion turbine power plants.
The news of the deal comes amid reports of an expected surge in electricity demand in the United States, driven primarily by the proliferation of data centers.
The Energy Information Administration earlier this year projected electricity demand was set to hit a record high both this year and next as competition between artificial intelligence developers intensifies. For this year, the EIA sees demand reaching 4,179 billion kWh, rising further to 4,239 billion kWh in 2026.
Meanwhile, the Federal Energy Regulatory Commission just published a report warning that the U.S. grid risks a breakdown this summer due to a combination of unfavorable factors including high forecast temperatures, AI-fueled demand for electricity and fast retirement of baseload generation that is not being replaced by equally reliable capacity anywhere near the necessary rate.
Earlier this week, another Texas power utility also struck a deal to acquire gas-powered generation capacity. NRG Energy will buy a portfolio of gas-fired power generation facilities valued at $12 billion from LS Power Equity Advisors, as the Houston-based firm also bets on the growing U.S. electricity demand.
“We are in the early stages of a power demand supercycle, and we are excited to lead the way with reliable energy solutions that will drive considerable value for NRG and all of our stakeholders,” NRG chief executive Larry Coben said.
Coal and gas power plants provide baseload generation, in other words, matching supply with demand every second—which wind and solar installations cannot do because of their exclusive reliance on weather conditions.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
