NRG to Use Renewable-Finance Strategy to Build New Gas Plants

NRG Energy Inc. is co-opting a key strategy that sped the growth of wind and solar farms to build new natural gas-fired power plants.

The electricity retailer is seeking investors to fund new gas plants that would mostly be used during high-demand hours, including in Texas, according to Chief Executive Officer Mauricio Gutierrez. NRG wouldn’t own the plants, but instead buy their output under long-term contracts -- deals that can hedge against high power prices on days of high electrical demand.

Power companies are racing to find or add generation to meet demand when extreme heat or cold saps ...