Shell Energy North America Expands Presence in ISO New England Market
Securing Long-Term Power Supply and Capacity
Shell Energy North America (SENA), a subsidiary of Shell, has successfully acquired a 100% equity stake in RISEC Holdings (RISEC), owner of a 609-MW combined-cycle gas-fired power plant in Rhode Island. This strategic move solidifies SENA’s position in the deregulated Independent System Operator New England (ISO New England) power market, ensuring a reliable and stable power generation source.
Meeting Growing Power Demand
As decarbonization efforts gain momentum in sectors like home heating and transportation, power demand is expected to surge in the ISO New England market. This acquisition enables Shell to maintain its energy supply agreement, which has been in place since 2019, and secure long-term energy offtake from the plant, located near Providence.
Key Plant Details
The RISEC power plant, operational since 2002, boasts a maximum capacity of 609 MW and an average operating capacity of 594 MW. With this acquisition, SENA is poised to generate an internal rate of return exceeding the hurdle rate set for Shell’s Power business.
Prior Ownership Structure
Before the transaction, the parent company of RISEC was 51% owned by funds managed by global investment firm Carlyle, while the remaining 49% was held by EGCO RISEC II, LLC, a subsidiary of Electricity Generating Public Company Limited (EGCO), a Thai public limited company.
About Shell Energy North America
As a full-service energy company, SENA provides comprehensive energy solutions across all aspects of the market. With over 25 years of experience in North American wholesale energy markets, SENA is a market leader in wholesale and retail power, natural gas, and environmental products.
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