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What Fuels NRG Energy’s Generation Operations?

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NRG’s generation mix

As discussed in the earlier parts of this series, NRG Energy’s (NRG) power generation assets are divided between various segments including NRG Business, NRG Yield (NYLD), NRG Home Solar, and NRG Renew.

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Natural gas

Natural gas fueled 48% of NRG Energy’s (NRG) total power generation capacities as of June 30, 2015. Over 90% of the company’s 25.1 gigawatts (or GW) natural gas-fired capacities belonged to the NRG Business segment discussed in Part 2 of this series.

Out of 23.1 GW of natural gas capacity with NRG Business, 8.7 GW was located on the Gulf Coast, 7.9 GW in the East Coast, and 6.5 GW in the West Coast. Apart from the natural gas capacities with NRG Business segment, 1.9 GW was owned and operated by NRG Yield. NRG Energy is natural gas heavy like some other utilities (XLU) such as NextEra Energy (NEE).

Coal and oil

Although NRG Energy takes pride in being one of the greener and cleaner utilities, coal still accounted for over 30% of its total power generation capacity as of June 30, 2015. Out of the 15.9 GW coal-fired capacity owned by the company, 5.1 GW was located on the Gulf Coast while 10.2 GW was located in the East Coast. Another 0.6 GW was based outside the US. Plus, 5.8 GW oil-fired capacity in the East Coast accounted for 11% of the company’s total generation capacities.

Renewables

NRG Energy has invested heavily in building renewable energy capacities in recent years. However, renewable energy accounts for less than 10% of the total generation capacity owned by the company. Out of 3 GW wind capacity, 1.7 GW is owned and operated by NRG Renew while the remainder is owned by NRG Yield.

Out of 1.3 GW solar capacity, 807 megawatts (or MW) is operated by NRG Renew, while the remainder is owned and operated by NRG Yield (NYLD). NYLD also owns small home solar capacity spread among the segments.

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