An oil-generated power plant in Norwalk that is owned by NRG Energy Inc. will be closed June 1, with the company citing low prices and falling revenues, according to reports.
The 340-megawatt plant, which features two oil-burning generators and a combustion turbine, has been in service since 1960. NRG, based in Princeton, N.J., is among the largest power generation companies in the U.S. with a portfolio consisting of about 47,000 megawatts.
An NRG representative told the Hartford Courant that energy prices have been consistently dropping in the region, which in turn has had a negative affect on the plant’s revenues.
“We’re dependent on the capacity market for all our revenues, and the capacity revenues aren’t sufficient to keep the plant going,” NRG spokesman David Gaier told the Courant.
While natural gas has surged in energy markets, oil accounted for less than one percent of New England’s electrical generation last year, according to the Independent System Operator-New England, which operates the region’s grid.
