Company drops plan for gas power plant in polluted New Jersey area
A power company has abandoned plans for a natural gas-fired power plant planned for an already polluted low-income area in New Jersey
WOODBRIDGE, N.J. — Opponents of a natural gas-fired power plant planned for an already polluted low-income area in New Jersey celebrated Thursday after hearing the company that proposed the project no longer plans to build it, citing low energy prices.
Competitive Power Ventures wanted to build a second plant beside one it already operates in Woodbridge, about 20 miles (30 kilometers) south of Newark. The company previously said the expansion is needed because of growing demand for energy, pitching it as a reliable backup source for solar and wind energy when those types of power are not available.
But in a statement Wednesday night, the Silver Spring, Maryland-based CPV said market conditions have deteriorated to the point where the project is no longer feasible.
Company spokesman Matthew Litchfield said CPV's agreement with PJM Interconnection, a regional power transmission organization, required it to either begin construction or terminate the agreement by Sept. 30.
“In light of current PJM market conditions that do not support construction of the project at this time, CPV had to withdraw from the interconnection agreement,” he said.
Litchfield said market prices for energy were too low, and that unlike many other types of generation projects, including offshore wind and nuclear power, the natural gas plant wouldn't be subsidized by the state.
“These prices currently do not support the construction of the project,” he said.
The company will continue to operate its existing plant, he added. It's evaluating uses for the adjacent land where the second power plant had been proposed.
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