Constellation to acquire Rhode Island gas plant from Shell for $715M

Solmar Insights

Constellation Energy has agreed to purchase the 609-MW Rhode Island State Energy Center (RISEC) from Shell Energy North America for $715 million, marking a substantial expansion of Constellation’s position in the ISO New England power market. The companies announced the transaction on September 10, 2026, amid a surge in M&A activity driven by strong load growth including demand from AI data centers.

Transaction details and motivations

According to statements from both companies, Constellation will acquire RISEC as a core strategic move to bolster its fleet in ISO New England. RISEC, situated in Johnston, Rhode Island, is a combined-cycle natural gas power facility and represents one of the region’s significant merchant generation assets. The $715 million deal also allows Shell to realize value after its relatively recent acquisition of the plant in 2025 from Carlyle.

Shell described the divestment as part of an “active portfolio management” approach, indicating a willingness to buy and sell generation capacity in response to market conditions. Shell’s president of trading and supply, Andrew Smith, noted that such transactions enable the company to strengthen or rebalance its North American trading positions as conditions warrant. For Constellation, the acquisition is expected to deepen its generation mix within ISO-NE, supporting both reliability and its wholesale trading strategy in New England.

Context in M&A and market dynamics

The RISEC acquisition occurs during a surge in U.S. power sector M&A volume. According to data from PwC, the value of power market M&A rose by 173% to $216 billion in the first half of 2026 compared to the same period in 2025. Institutional investors and independent power producers remain active, seeking opportunities in gas plants, renewables, and behind-the-meter models as the energy transition accelerates.

Load growth, including accelerating demand from AI-driven data center expansion, has contributed to the attractiveness of merchant and contracted generation assets, according to PwC reporting. Constellation’s move aligns with these trends, reinforcing its competitive position and portfolio resiliency in an increasingly dynamic New England electricity market.

Shell’s parallel acquisition in PJM

In a separate but related transaction, Shell announced its deal to acquire Hunlock Creek Generating LLC, a Pennsylvania-based portfolio totaling 169 MW of gas-fired capacity. The assets serve the PJM Interconnection market and are being acquired from Riverview Power Holdings LLC, a subsidiary of Castleton Commodities International. No financial terms for this Pennsylvania deal were disclosed.

This move into PJM solidifies Shell’s market footprint in the Mid-Atlantic, complementing its decision to exit the Rhode Island asset. By optimizing asset positions between ISOs, Shell is able to match physical supply capabilities to regional market opportunities, trading strategies, and evolving locational pricing signals.

Implications for ISO New England capacity

For ISO New England, the transfer of RISEC’s 609 MW capacity into the Constellation fleet represents a significant shift in market player composition and portfolio management. Combined-cycle plants like RISEC are central to grid reliability in New England, especially as seasonal demand peaks and legacy plants retire.

Developers, traders, and buyers will closely watch how Constellation integrates RISEC into its optimization strategies, both for forward capacity and energy markets. Merchant gas capacity remains vital in balancing system needs as renewables further proliferate on the grid, and timing around market reconfiguration, resource bidding, and interconnection planning will be fundamental for participants responding to this deal.

Reporting via the original publisher