Constellation Energy is currently in talks with Calpine’s private equity owners, which include an affiliate of Energy Capital Partners and other investors, to nail down the details of an acquisition that could value Calpine around $30 billion including debt, reports Bloomberg, citing “people familiar with the matter.” The deal, if realised, would be one of the biggest in the history of power generation. Constellation already owns and operates the largest fleet of nuclear plants in the United States.
Calpine has a fleet of 78 energy facilities – including natural gas-fired, geothermal, solar and battery storage, representing around 27 GW of capacity and is the largest generator of electricity from natural gas and geothermal resources in the USA. It holds a majority stake in ‘The Geysers,’ a collection of 19 geothermal power plants outside Sonoma, California that is collectively the largest producer of geothermal power in North America, at 725 MW.
Calpine is also running carbon capture pilot projects at multiple gas-fired plants in the USA. The Houston-based company went private in 2017 in a $17 billion deal.
Bloomberg reports that Constellation sees the deal as a chance to expand its power generation portfolio at a time of record growth in electricity demand. After years of flat demand, electricity load growth forecasts have exploded, largely driven by data centres, industry and electrification. However, the negotiations and conversations surrounding the potential deal are still continuing, and the takeover price could still ultimately change.
