Dive Brief:
- Constellation Energy plans to acquire the 609-MW Rhode Island State Energy Center from Shell Energy North America for $715 million, the companies announced Thursday. The deal will expand Constellation’s position in the ISO New England market, the company said.
- In a separate transaction, Shell said it would acquire 100% equity in Hunlock Creek Generating LLC, which owns 169 MW of gas-fired capacity in Pennsylvania, serving the PJM Interconnection market. Hunlock is owned by Riverview Power Holdings LLC, an indirect subsidiary of Castleton Commodities International. Financial terms of the deal were not published.
- Electric load growth, driven in part by AI data center demand, is fueling a “new [mergers and acquisition] cycle,” PwC said in a June report on power and utility sector dealings.
Dive Insight:
In the first half of the year, the value of power market M&A grew 173% to $216 billion, compared with the first half of 2025, according to PwC data.
“Even with the increase in strategic M&A activity, the power and utilities sector remains an attractive market for financial sponsors, with continued investment in independent power producers, behind-the-meter platforms, and energy-as-a-service models,” PwC said in its June note.
Shell’s deals “reflect our dynamic approach to managing our trading portfolio," Andrew Smith, Shell's president of trading and supply, said in a statement. "We selectively invest in assets that strengthen our market position and create value, while remaining ready to realize value when market conditions present attractive opportunities."
The sale of RISEC “enables Shell to realize significant value on an accelerated timeline,” the company said. Shell acquired the combined-cycle plant in 2025; the facility had been majority-owned by global investment firm Carlyle.
RISEC is a combined-cycle gas plant located in Johnston, Rhode Island, and is expected to become part of Constellation’s merchant generation portfolio, the company said.
RISEC is “a high-performing asset that perfectly complements Constellation’s extraordinarily successful customer business in New England,” Constellation Chairman, President and CEO Joe Dominguez said in a statement “As Constellation’s business in New England grows, we need a reliable asset that is well-positioned on both the electric grid and the natural gas pipeline system.”
The Hunlock portfolio to be acquired by Shell includes a two-unit, 125-MW combined-cycle power plant and a 44-MW simple-cycle peaking plant.
Both deals are expected to close in the first quarter of 2027, Shell said.
