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GenOn Energy, Inc. _ Bowline 3 and Lovett ... - Energy Highway

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<strong>GenOn</strong> will procure state-of-the-art combustion turbines, heat recovery steam generators,<br />

steam turbine, air cooled condenser, <strong>and</strong> balance-of-plant equipment for the construction<br />

of <strong>Bowline</strong> 3. These technologies are widely available in the marketplace <strong>and</strong> have strong,<br />

well-documented performance track records. <strong>GenOn</strong> will seek to utilize qualified providers<br />

of equipment, materials <strong>and</strong> services located in the new York State region where possible<br />

<strong>and</strong> practical.<br />

pRoject justIfIcatIon<br />

<strong>Bowline</strong> 3 addresses key objectives <strong>and</strong> goals of the new York <strong>Energy</strong> <strong>Highway</strong> initiative as<br />

enumerated in the RFI.<br />

1. OBJECTIVE: Reduce constraints on the flow of electricity to, <strong>and</strong> within, the downstate<br />

area; <strong>and</strong> exp<strong>and</strong> the diversity of power generation sources supplying downstate.<br />

Assure that long-term reliability of the electric system is maintained in the face of<br />

major system uncertainties.<br />

Downstate new York, <strong>and</strong> the Lower Hudson Valley in particular, faces the possibility<br />

of significant near-term retirements of generating capacity due to weak market con-<br />

ditions <strong>and</strong> pending environmental regulations. These retirements threaten to jeopardize<br />

electric grid reliability in this critically important region of new York's bulk electrical<br />

system. <strong>Bowline</strong> 3, as an efficient CCGT facility capable of operating at a high<br />

capacity factor, will provide the replacement voltage support <strong>and</strong> power necessary to<br />

deliver safe <strong>and</strong> affordable grid reliability in the Lower Hudson Valley region. maintaining<br />

voltage levels in the Lower Hudson Valley is critical to optimizing new York’s ability<br />

to transfer energy efficiently to, <strong>and</strong> within, the downstate region, which is the largest<br />

driver of the statewide economy.<br />

2. OBJECTIVE: Encourage development of utility-scale renewable generation resources<br />

throughout the State.<br />

As new York adds more renewable generation, the intermittent nature of these power<br />

resources will create challenges for system operators seeking to maintain a constant<br />

balance between load <strong>and</strong> generation. In this instance, the burden of maintaining<br />

system reliability will fall increasingly on the flexible operation of well-located thermal<br />

generation units. <strong>Bowline</strong> 3, as a state-of-the-art CCGT unit, will provide operational<br />

flexibility <strong>and</strong> load-following capability that will contribute to safe <strong>and</strong> affordable grid<br />

reliability <strong>and</strong> facilitate the transfer of renewable energy to the downstate region. This<br />

capability will be especially critical if high capacity factor, baseload generation units<br />

currently serving the downstate region are removed from the generation mix.<br />

3. OBJECTIVE: <strong>Inc</strong>rease efficiency of power generation, especially in densely populated<br />

urban areas.<br />

As a CCGT unit with an ISO heat rate of approximately 6,800 mmBtu/kwh <strong>and</strong> designed<br />

to burn low-cost natural gas, <strong>Bowline</strong> 3 will be much more efficient <strong>and</strong> environmentally<br />

friendly than the older, less efficient gas/oil boiler units, which constitute<br />

www.GEnOnBOwLInE.COm<br />

4

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