PSEG Power has plans to invest US$600 million to develop Sewaren 7, a new 540-MW, dual-fuel combined-cycle power plant located in New Jersey (USA.
Aditionally, Sewaren 7 has cleared PJM's Reliability Pricing Model Base Residual Auction. PJM's capacity market, called the Reliability Pricing Model, is used to meet long-term supply reliability by procuring the appropriate amount of power supply resources needed to meet predicted energy demand three years in the future.
PSEG Power will work to secure permits and expects to begin construction on the plant in early 2016. The plant is targeted to be completed and supplying needed energy to New Jersey and the region in time for summer of 2018.
The Sewaren 7 plant will be constructed at PSEG Power's existing Sewaren Generating Station site in Woodbridge, New Jersey, replacing Sewaren Units 1, 2, 3 & 4, which will be retired after almost 70 years of providing energy to the region. In repowering an existing generating site, PSEG Power will be able to take advantage of existing infrastructure.
Sewaren 7 will represent a major investment in the local and regional economy. The plant will bring significant tax revenue to Woodbridge Township, as well as other economic benefits. The plant will run primarily on natural gas, but also will be able to run on ultra-low-sulfur distillate (ULSD) fuel oil as a back-up, supporting fuel diversity and exceptional dependability. Sewaren 7 will be well positioned to supply power for the Capacity Performance market due to its dual-fuel capability and high level of reliability.
Rich Lopriore, president of PSEG Fossil, stated:
"PSEG is excited to be expanding our role in providing cleaner, more reliable energy to the New Jersey region with the construction of a combined-cycle plant in Woodbridge Township. It is a true win for Woodbridge and the state, not just adding to the reliability of the energy grid, but creating jobs, tax revenues and general economic activity to the region. We look forward to working with Woodbridge Township to move this project forward."
Woodbridge Mayor John E. McCormac commented:
"The Sewaren 7 combined-cycle plant will add highly-efficient generating capacity to the region, supporting electric system reliability, and providing environmental and economic benefits. Woodbridge Township fully endorses PSEG's proposed project, and welcomes continued economic investment at the Sewaren site."