TXBIZNEWS

On May 12, NRG Energy announced a $12 billion acquisition of gas-fired power generation facilities from LS Power Equity Advisors, doubling its capacity to meet growing U.S. electricity demand.

The Details:

Deal Scope: The portfolio includes 18 natural gas-fired facilities across nine states, totaling 13GW, boosting NRG’s capacity to 25GW in key markets like Texas and the Northeast.

Demand Surge: CEO Larry Coben noted a “power demand supercycle”

Financials: The deal involves $6.4B in cash, $2.8B in stock, and $3.2B in assumed debt, with LS Power taking an 11% stake in NRG.

Earnings Boost: NRG expects a 14% annual earnings growth rate, up from 10%, following the acquisition set to close in Q1 2026.

Why It Matters:

This acquisition positions NRG to lead in meeting U.S. energy needs, especially in Texas, while enhancing grid reliability. NRG’s strategic buy signals confidence in Texas’s energy future amid a national power boom.

In addition to generation, NRG is acquiring LS Power’s commercial and industrial virtual power plant platform, CPower, which brings 6 GW of flexible, dispatchable demand-side capacity. This enhances NRG’s ability to balance grids in real time and appeal to large-scale energy users with more resilient, cost-optimized solutions.

The deal also strengthens NRG’s presence in high-growth verticals. By integrating gas generation with VPP capabilities, NRG is creating a more dynamic power portfolio built for the era of digital infrastructure.

With CPower’s proven market interface and energy efficiency programs, NRG can also offer demand response and grid services to utilities and ISOs, creating new revenue streams while helping further stabilize an increasingly complex grid.

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