NRG Buying LS Power Gas-Fired Plants in $12-Billion Deal

NRG Energy announced it would acquire 18 natural gas-fired power plants with 13 GW of generation capacity as part of a $12-billion cash-and-stock deal with LS Power.

Houston, Texas-based NRG on May 12 said the deal, expected to close in the first quarter of 2026, would double the group’s overall generation capacity portfolio to 25 GW. The gas-fired plants are located across nine states, including Texas and in the U.S. Northeast.

LS Power, headquartered in New York City, is an energy infrastructure investment firm. NRG CEO Larry Cohen said the deal is driven by the expected rise in demand for electricity from industrial customers, including data centers.

‘Demand Supercycle’

“We are in the early stages of a power demand supercycle,” said Cohen. The utility said the acquired assets also would include CPower, a commercial and industrial virtual power plant (VPP) platform. VPPs integrate multiple energy resources to provide additional power for the grid.

The companies said NRG will pay $6.4 billion of the deal in cash, and $2.8 billion in stocks, to LS Power. NRG also will assume $3.2 billion of net debt at the close of the deal.

“This acquisition transforms NRG’s generation fleet and broadens our customized product offerings, enhancing our ability to bring the future of energy to millions of customers across the U.S.,” said Cohen. “The transaction is financially compelling as it strengthens our credit profile and turbocharges NRG’s growth rate, while also supporting continued robust capital returns. We are in the early stages of a power demand supercycle, and we are excited to lead the way with reliable energy solutions that will drive considerable value for NRG and all of our stakeholders.”

‘Milestone … for Investors’

“This transaction is a significant milestone for our firm and investors,” said Paul Segal, CEO of LS Power. “Over time, LS Power has carefully assembled, expanded, redeveloped, repositioned, and operated this generation portfolio, which is uniquely situated to meet the growing energy demand in the markets it serves. In the capable hands of the NRG team, these projects, along with CPower, will continue to provide critical services to the grid, enhancing both its resilience and affordability. As we have since our founding in 1990, LS Power will continue to invest in and develop secure and reliable energy infrastructure across the U.S.”

LS Power, which itself has been acquiring natural gas assets, said it would keep about 10 GW of power generation capacity across natural gas, renewables, and energy storage projects. The company also said it would keep its LS Power Grid (LSPG) platform. LSPG, which represents the company’s competitive transmission business, has more than 780 miles of high-voltage transmission lines in operation and another 350-plus miles currently under construction or development, representing a combined capital investment of more than $6 billion.

LS Power last summer reached an agreement with Algonquin Power & Utilities Corp. to acquire its renewable energy business, which includes mostly wind and solar assets located throughout the U.S. and Canada. LS Power in announcing that deal in August 2024 said it includes 44 operating assets with more than 3,000 MW of generating capacity, along with an 8,000 MW pipeline of wind, solar, battery energy storage, and renewable natural gas projects.

—Darrell Proctor is a senior editor for POWER.