LS Power, an energy owner-developer based in New York, has initiated the sale of a significant portfolio of natural gas-fired plants in the US, reported Bloomberg, citing people familiar with the matter.

These facilities provide approximately 5GW of power to the largest grid in the US, managed by PJM Interconnection.

The portfolio, known as Granite Energy, is a substantial part of the 13-state grid’s infrastructure.

The sale process, which began earlier this year, is currently private, the undisclosed sources said.

Electricity generated from the portfolio is enough to supply four million people.

Based on recent plant purchases and earnings estimates, one person estimated that the deal may fetch around $2bn, according to the report.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

This appreciation is due to the increasing demand for power and the improving outlook for profitability in the sector.

Despite the potential sale, LS Power has not publicly commented on the status of the transaction, and there is no guarantee that the sale will be completed.

In January of this year, LS Power entered into an agreement to purchase the Hunterstown plant in Gettysburg, Pennsylvania. This deal is expected to close in the second quarter of 2024.

In May 2023, the company expanded its presence in Texas by agreeing to acquire more than 2.1GW of natural gas generation capacity in the ERCOT North region.

This acquisition included two baseload combined cycle blocks with 1.2GW of capacity in Jack County, a 280MW combined cycle plant in Johnson County and four peaking units with a total of 568MW of capacity in Palo Pinto County.

LS Power operates a 16GW gas-fired generation fleet, which is complemented by wind, hydro and solar power, as well as battery energy storage and other energy transition technologies.