NRG Energy Signs Deal with Virgin Limited Edition to Power Necker Island with a Renewable Energy-Driven Micro-grid Solution

  NRG Energy Signs Deal with Virgin Limited Edition to Power Necker Island
  with a Renewable Energy-Driven Micro-grid Solution

 — Islanded Micro-grid Will Generate Reliable, High-Quality Electricity Under
Cutting Edge Diesel Reduction Agreement that Dramatically Reduces Fuel Usage —

Business Wire

PRINCETON, N.J. & BRITISH VIRGIN ISLANDS -- February 4, 2014

NRG Energy, Inc. (NYSE:NRG) and Virgin Limited Edition announced today the
entry into a cutting-edge Diesel Reduction Agreement for the provision of
renewable power to Necker Island. Pursuant to this Agreement, NRG will develop
a renewables-driven micro-grid for the entire island, supplying high quality,
reliable electricity powered at least 75% by an integrated array of solar,
wind and energy storage technologies. This system will be supported by new
energy efficiency and energy control automation designed to reduce overall
energy use and synchronize energy consumption with renewable energy production
on the island. The agreement was signed and announced at the “Creating Climate
Wealth Summit,” by Sir Richard Branson, Founder of the Virgin Group, and NRG
CEO David Crane.

The Creating Climate Wealth Summit was hosted by the Carbon War Room, in
partnership with Rocky Mountain Institute, as part of the Ten Island Renewable
Challenge. The Necker Island Project represents “Demo Island” of the Challenge
that seeks to help island nations flip off fossil fuels. The agreement between
Virgin and NRG demonstrates that the technical solutions required to achieve
this result exist today.

By deploying highly distributed and locally automated and controlled
installations, many island nations of the Caribbean can reduce and ultimately
eliminate their dependence on fossil fuels for electricity. The high cost of
imported fossil fuels across these islands creates an opportunity to deliver
clean energy solutions today at a much lower cost, without subsidies and with
immense economic and environmental benefit to the people of the Caribbean.

"With oil setting the marginal price of electricity, retail electricity prices
in the Caribbean are among the highest in the world, hindering economic
development, job creation and quality of life,” said Crane, CEO of NRG. "By
tapping into each island’s specific, readily available and ample renewable
energy resources, we can achieve an immediate and significant reduction of
operating expenses, imported fuel cost, carbon footprint and other air
emissions and noise pollution. The renewables-driven micro-grid solution being
designed and installed on Necker is intended to demonstrate this and provide a
scalable real life application relevant to other islands of the Caribbean."

“The potential for more renewable energy across the world is huge especially
in places like the Caribbean, where islands offer an excellent test bed to
demonstrate and scale innovative, clean energy solutions. While small compared
to island nations, Necker is an ideal ‘guinea pig’ for the Carbon War Room’s
Ten Island Challenge and will be able to show the potential of
‘state-of-the-art’ technologies in renewable energy,” said Branson, Founder of
Virgin Group.

NRG, the largest competitive power generator in the US, has established
partnerships with leading industry suppliers and regional partners to
accelerate project development and execution in the Caribbean. NRG’s solar and
off-grid projects elsewhere in the Caribbean Basin have shown that businesses
can cut energy costs by transitioning to renewable energy. At an island-wide
and regional level, such savings represent the opportunity to increase
competitiveness across all industry sectors. Lower energy expenditures also
increase household disposable income, stimulating consumer spending and
savings.

A micro-grid is a network of distributed energy resources that can either be
grid-tied or islanded from the conventional grid. Micro-grids allow a person,
a building, a city or even an entire island to leverage the most appropriate
fuels and technologies to provide clean, reliable and high quality power. To
make the system financially viable requires intelligent design to integrate
multiple fuel sources seamlessly and optimization through robust demand
management to minimize system size. Renewables-driven micro-grids typically
use diesel generation – which currently is the primary source of electricity
on most islands in the Caribbean – as a backup to solar, wind, geothermal and
other renewables, drastically reducing diesel consumption while making the
model compatible with existing infrastructure.

The installation of the renewable power system is subject to regulatory
approval in the British Virgin Islands, which the parties promptly will seek
to obtain with the appropriate regulators.

About NRG

NRG is leading a customer-driven change in the U.S. energy industry by
delivering cleaner and smarter energy choices, while building on the strength
of the nation’s largest and most diverse competitive power portfolio. A
Fortune 500 company, we create value through reliable and efficient
conventional generation while driving innovation in solar and renewable power,
electric vehicle ecosystems, carbon capture technology and customer-centric
energy solutions. Our retail electricity providers – Reliant, Green Mountain
Energy, Energy Plus and NRG Residential Solutions – serve more than 2 million
residential and commercial customers throughout the country. More information
is available at www.nrgenergy.com. Connect with NRG Energy on Facebook and
follow us on Twitter @nrgenergy.

About Virgin Limited Edition

Virgin Limited Edition is an award-winning collection of unique retreats,
chosen for their beautiful locations and magnificent surroundings; each offers
a sense of fun, style, luxury and exceptional personal service. The group
includes Necker Island in the Caribbean’s British Virgin Islands, Ulusaba
Private Game Reserve in South Africa, The Roof Gardens and Babylon Restaurant
in London; Kasbah Tamadot in Morocco, The Lodge in Verbier, Necker Belle, a
105 foot luxury catamaran, Necker Nymph, a three man aero submarine and the
latest addition to join the portfolio, Mahali Mzuri, a luxury tented safari
camp in Kenya.

About Carbon War Room

The Carbon War Room is a global nonprofit, founded by Sir Richard Branson and
a team of like-minded entrepreneurs, that accelerates the adoption of business
solutions that reduce carbon emissions at gigaton scale and advance the
low-carbon economy. The organization focuses on solutions that can be realized
using proven technologies under current policy landscapes. For more
information contact press@carbonwarroom.com.

Contact:

NRG Energy Contacts
Karen Cleeve, 609-524-4608
or
Virgin Limited Edition Contacts
Charlotte Tidball, +44 (0) 208 600 0468
charlotte.tidball@virginlimitededition.com
or
For General Inquiries
microgrid@nrgenergy.com
 
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