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NRG to Use Renewable-Finance Strategy to Build New Gas Plants

  • Company would buy output from new gas peakers funded by others
  • Long-term contracts have supported new wind and solar farms

NRG Energy Inc. is co-opting a key strategy that sped the growth of wind and solar farms to build new natural gas-fired power plants.

The electricity retailer is seeking investors to fund new gas plants that would mostly be used during high-demand hours, including in Texas, according to Chief Executive Officer Mauricio Gutierrez. NRG wouldn’t own the plants, but instead buy their output under long-term contracts -- deals that can hedge against high power prices on days of high electrical demand.