PSEG Power has acquired the 755 MW Keys Energy Center project in Maryland (USA) from Genesis Power and an energy-focused private equity fund managed by Ares EIF Management.
PSEG Power acquired the project through its wholly-owned subsidiary PSEG Fossil and plans to change the name of the facility to the PSEG Keys Energy Center (KEC).
The 755 MW natural gas-fired combined-cycle plant, which represents an investment of US$825-875 million, will be located roughly 2 km east of Brandywine (Maryland). The site will connect directly to the Potomac Electric Power Company's (PEPCO)/PJM 500 kV transmission line adjacent to the property; no new transmission lines are required.
PSEG expects to begin construction in 2015, with the goal of commencing operation in 2018.
Bill Levis, COO and President of PSEG Power, has commented:
"The new plant offers a strong operational and financial fit for PSEG Power's balanced generation portfolio and will expand our footprint in our core PJM market. This is an opportunity to add to the reliability of the energy grid, provide clean energy to Maryland and create new jobs and economic activity locally and within the region."
PSEG Fossil will oversee construction, operate and maintain the power plant. SNC - Lavalin Constructors Inc. is the designated Engineering, Procurement and Construction (EPC) contractor.
The plant will generate approximately 700 jobs during the two-year construction phase. More than 20 permanent jobs will be created to run the new plant once it becomes operational.
PSEG Power is an independent power producer that generates and sells electricity in the wholesale market, with a portfolio totaling over 13,000 MW of generating capacity. With the addition of the Keys Energy Center, the combined-cycle gas turbine fleet would grow to represent more than 4,000 MW, or approximately one third of the entire portfolio.
IPP Journal has recently reported on several gas deals globally: