Home Economy Economic Activity Shell Energy North America finalizes purchase of Johnston power plant

Shell Energy North America finalizes purchase of Johnston power plant

By

Matthew McNulty

-

01/27/2025

Entergy Corporation Rhode Island State Energy Center — SHELL ENERGY New England L.P., a Shell subsidiary, has finalized its of purchase the Rhode Island State Energy Center, the 609-megawatt natural gas-fired power plant located on Shun Pike in Johnston. / COURTESY ENTERGY CORP.

JOHNSTON – Shell Energy North America L.P., a subsidiary of Shell PLC, has completed its purchase of a power plant located on Shun Pike, the energy company announced Monday. The acquisition, which was finalized on Jan. 24, means Shell now owns a 100% equity stake in the Rhode Island State Energy Center. The plant outside

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JOHNSTON – Shell Energy North America L.P., a subsidiary of Shell PLC, has completed its purchase of a power plant located on Shun Pike, the energy company announced Monday. The acquisition, which was finalized on Jan. 24, means Shell now owns a 100% equity stake in the Rhode Island State Energy Center. The plant outside of Providence houses a maximum-capacity 609-megawatt, two-unit combined-cycle gas turbine. Shell says the purpose of acquiring the plant is to "maintain [their] position in the deregulated Independent System Operator New England." ISO New England is a nonprofit that oversees New England's wholesale electricity market. The organization operates outside of government regulation, offering consumers multiple choices in who provides their electricity. "[This] ensures that the region has reliable, competitively priced wholesale electricity today and into the future," per the nonprofit's website. Electricity use in the region is expected to grow by 1.8% a year from 2024 to 2033, according to a May report by ISO New England. Shell attributes the growing power demand in New England and beyond to ongoing decarbonization efforts in areas like transportation and home heating. The newly purchased RISEC plant began commercial operations in 2002. However, Shell Energy North America has held a contract for 100% of the plant’s energy generation since 2019, according to the company. The private equity Carlyle Group had previously held a majority ownership of the plant with a 51% stake. The remaining 49% was controlled by a subsidiary of the Electricity Generating Public Company, which purchased the plant from Entergy Wholesale Commodities in 2015 for $490 million, Providence Business News reported in October. Entergy had owned the plant since 2011. Earlier this month, the Federal Energy Regulatory Commission approved Shell's planned purchase of the plant, according to a report by Utility Dive. The transaction was previously subject to regulatory approvals, as previously reported by PBN. However, Shell's deal was "consistent" with public interest, the commission told the outlet. Representatives for Shell did not immediately return PBN's request for comment. Matthew McNulty is a staff writer for Providence Business News.