NRG Energy, Inc. Issues Open Letter to NRG Stockholders Regarding Latest Low and No-Carbon Technology Investment
– By Linton Levy –
NRG Energy, Inc. has issued the following open letter to NRG stockholders regarding the Company’s latest investment in no and low-carbon technology:
Dear NRG Stockholders:
Today we announced that NRG signed an agreement to acquire the development rights for approximately 500 megawatts (MW) of contracted solar projects which are in various stages of development and utilize eSolar’s leading and low cost solar thermal technology.
While this acquisition does not represent a substantial upfront commitment of NRG capital—less than $10 million—it nonetheless signifies a meaningful step forward in NRG’s efforts to be a leader in solar development in the United States. These scale projects will be located in parts of the country with bountiful solar resources and will incorporate a technology that can be built at a cost that makes the projects profitable and, ultimately, value-enhancing to our shareholders. As the Administration moves forward with its plan to restart the economy, we believe the development projects we are acquiring are precisely the kind of zero-carbon, “shovel ready,” economy stimulating infrastructure projects that the Government is seeking to incent with its financial support.
For NRG, this initiative represents the biggest step forward by the “Low Carbon Technology” development group, which we created in June 2008. This group positions NRG to take advantage of the extraordinary opportunities which we believe are embedded within the two great long-term dynamics underway in our industry—the trend towards sustainability and the effort to combat climate change. Finally, the initiative with eSolar complements the considerable progress and success we have experienced over the past several months in advancing our nuclear development program.
This transaction with eSolar represents one of a number of attractive opportunities that we are seeing in our sector and which we believe NRG can act upon in a manner, and at a price, which will create substantial value for our shareholders. Indeed, the absolute size of our liquidity, combined with our lean organization, allows us to respond faster and more effectively than virtually any other power generator, or utility, to these growing opportunities—and to translate them into real value. This is how NRG is creating value for our shareholders now and in the months and years to come.
Sincerely,
/s/ David Crane
David Crane
President and Chief Executive Officer