Dive Brief:
- Wholesale power company Dynegy said on Thursday it plans to retire the 50-year-old Morro Bay natural gas-fired generating plant.
- Dynegy could not find a long-term buyer for the 650-megawatt power plant's output, a company spokeswoman told Reuters.
- Moreover, significant investments would have to made to keep the plant in operation, including a upgrade of its cooling water system. California is forcing 19 power plants that use so-called once-through cooling with seawater to retrofit with air-cooled systems or other technologies. The Morro Bay plant has until the end of 2015 to comply.
Dive Insight:
Dynegy is considering using the Morro Bay site to develop renewable energy projects with Connecticut-based Starwood Energy Group. Californians are far more welcoming to renewable projects and more capacity is needed to help the state's utilities reach the 33% renewable portfolio standard by 2020.
