Shell Energy North America (US), L.P. (SENA), a subsidiary of Shell plc, has completed the acquisition of RISEC Holdings, LLC (RISEC), securing full ownership of a 609-megawatt (MW) combined-cycle gas turbine power plant in Rhode Island. The deal, originally announced in 20XX, is expected to strengthen Shell’s position in the Independent System Operator New England (ISO New England) power market.
This acquisition aligns with Shell’s strategy of acquiring stable, long-term power generation assets in priority trading markets. Given the anticipated increase in electricity demand in New England driven by decarbonization efforts in home heating and transportation, Shell’s move demonstrates its commitment to ensuring a reliable energy supply in the region.
Through this acquisition, Shell ensures continuity in an existing power supply agreement that has been in place since 20XX. This deal guarantees long-term energy off-take from the plant, strengthening Shell’s role as a major player in the ISO New England market.
“This acquisition is a significant step for Shell, providing operational stability and long-term energy security in a crucial US power market,” a Shell spokesperson said. “It enhances our ability to manage risks while ensuring a steady, reliable supply of electricity to the region.”
RISEC’s two-unit combined-cycle gas turbine power plant, located outside Providence, Rhode Island, has been operational since 2002 and has a maximum capacity of 609 megawatts and an average operating capacity of 594 megawatts. Unlike traditional power plants, these facilities generate electricity using gas turbines, while simultaneously capturing waste heat to generate steam that powers additional turbines. This enhances efficiency and reduces emissions compared to single-cycle plants.
In today’s evolving energy landscape, the role of reliable, flexible power plants is becoming more important to balance intermittency in energy supply. Shell’s acquisition of RISEC demonstrates its commitment to providing stable electricity generation while supporting the transition to a lower-carbon future.
According to Shell, the acquisition is within its cash capital expenditure guidelines and does not alter its overall spending outlook. The deal also is expected to deliver an internal rate of return above the hurdle rate set for the company’s Power business, ensuring financial viability and long-term profitability.
Before the acquisition, RISEC was jointly owned by Carlyle Group (51%) and Electricity Generating Public Company Limited (EGCO) of Thailand (49%). With Shell now assuming full control, the company has gained a significant stake in the US power market, especially in the New England region. Industry analysts note that Shell’s move reflects a strategic response to market dynamics. By securing high-efficiency, gas-fired generation assets, Shell can maintain market resilience while adapting to changing energy demands.
Furthermore, the acquisition highlights broader trends in the global power sector. With China, the US, and Europe accelerating their decarbonization initiatives, major energy players such as Shell are positioning themselves to meet increasing electricity demand while reducing their carbon footprints.
