In 2002, we established our portfolio transformation strategy to better meet customers’ needs by replacing older, less efficient generation with cleaner, more efficient resources. Investments in efficient, dispatchable generation sources result in benefits within and beyond Entergy’s utility service area and allow further integration of additional intermittent renewable generation where the resources are available and cost-effective.
Our resource decisions are informed by many factors such as the age of assets, prospective environmental regulations, energy efficiency and demand-side management, and evolving customer preferences and expectations. Since establishing this strategy, we have replaced roughly 30 percent of our generation resources with cleaner, more efficient resources.
In 2012, we recognized that our portfolio transformation strategy would require us to build large capital projects. We formed an organization of dedicated and highly specialized people to successfully deliver these large capital projects — safely, on schedule, and on budget. In building that organization, we benchmarked project management organization best practices across all industries. In 2014, we unveiled a comprehensive project management organization that manages large projects from concept to operation. This team includes 100 talented employees with strengths in project planning, management, and delivery. Guided by that team, we completed numerous major generation projects on schedule and on budget — or better.
2019 Portfolio Transformation Highlights
In 2019, we continued to advance our portfolio transformation strategy by enhancing our infrastructure with a mix of efficient natural gas and renewable resources.
- In May 2019, Entergy Louisiana completed construction of J. Wayne Leonard Power Station, a 943-MW combined-cycle gas turbine in Montz, Louisiana.
- In October 2019, Entergy Mississippi acquired Choctaw Generating Station, a 2003 810-MW CCGT in French Camp, Mississippi.
- Entergy Louisiana continued construction of Lake Charles Power Station, a 994-MW CCGT with an estimated in-service date of mid-2020.
- In February 2019, Entergy New Orleans began construction on New Orleans Power Station, a 128-MW unit composed of natural gas-powered reciprocating internal combustion engines. The facility has an estimated in-service date of 2020.
- In Louisiana, construction continued on Washington Parish Energy Center, a 361-MW simple-cycle combustion turbine in Bogalusa, Louisiana. The project is expected to be in service in 2020, at which time Entergy Louisiana will acquire the facility.
- Entergy Texas began construction of Montgomery County Power Station, a 993-MW CCGT located next to the company’s existing Lewis Creek power units. The facility has an estimated in-service date of 2021.
- Entergy New Orleans continued construction on 5 MW of distributed-scale solar resources through its commercial rooftop solar program. The program leases commercial building rooftops to install utility-owned solar that will capture the power of the sun and put clean energy directly onto the electric distribution grid for the benefit of all customers. Installations are expected to be completed in 2020.
- Entergy New Orleans began a pilot project for company-owned residential rooftop solar, completing 64 of 100 installations in 2019.
- In Arkansas, construction continued on Chicot Solar Project, a 100-MW solar photovoltaic installation near Lake Village, Arkansas. It is currently under construction and is expected to be completed in 2020. Entergy Arkansas has a power purchase agreement for the output from the facility.
- In Louisiana, construction began on Capital Region Solar, a 50-MW facility located in West Baton Rouge Parish. A 20-year power purchase agreement for the output from this facility was selected from a request for proposals for renewable resources.
- Entergy New Orleans received approval for three solar projects totaling 90 MW from its renewables request for proposals. These projects are in process.
- Entergy Mississippi plans to partner with Recurrent Energy on a new 100-MW solar energy farm in Sunflower County. The proposal is before the Mississippi Public Service Commission.
- Entergy Arkansas announced plans for a 100-MW solar energy facility in White County near Searcy. This project, pending approval by the Arkansas Public Service Commission, will be the largest utility-owned solar facility in the state and the first to feature battery storage. The project is expected to be in service in 2021.
Looking ahead, we currently expect to add 7,000 to 8,000 megawatts of new generation from 2022 through 2030 as we continue to deactivate older legacy units. These investments would continue to modernize infrastructure, serve load growth, and help us achieve stated environmental commitments. We anticipate that up to half of this new generation could be renewables, primarily solar, with the balance being highly efficient gas generation. The specifics may change as technology and economics continue to evolve. We are committed to work with regulators and other stakeholders to determine the best strategy to meet customer needs for reliability and affordable bills, while achieving the company’s sustainability goals.
Our Energy Mix
As a result of our portfolio transformation strategy and our power-purchasing decisions, natural gas represents 38 percent of our generation capacity to serve our utility customer demand. Our new-build natural gas-powered units, in operation or under construction, represent roughly 4,000 MW of highly efficient generation. These efficient new units improve system reliability, reduce environmental impacts, and reduce costs for our customers by using less fuel. These units also have lower maintenance costs, produce significantly fewer emissions than older generation, and require less water.
We are also investing in owned and contracted carbon-free renewable generation. In 2019, renewable resources (solar, wind renewable energy credits, hydro, biomass, landfill gas, and waste heat) supplied approximately 2.8 million MWh, or approximately 2 percent of total electric demand, to our utility customers. While still a small portion of our utility generation, as technology and economics continue to improve, we are pursuing additional utility-scale renewable opportunities as well as potential applications for distributed energy resources. We currently have nearly 2,000 megawatts of renewable projects in various stages of development or planning.
Utility Nuclear Fleet Capability Factor
Capability factor: Percentage of the maximum energy a plant is capable of supplying to the grid, limited only by factors within control of plant management.
Plant performance based on 18/24-month operating cycle.
Nuclear generation remains a key component of our clean generation portfolio. Our nuclear assets provide significant benefits to our stakeholders through low-cost, reliable, and virtually emission-free baseload power generation; valuable fuel diversity; reduced fuel price volatility; and positive economic impact on local communities. Investing in our utility nuclear generation assets to maximize their output and ensure safe, reliable operation preserves the long-term benefits of the plants and is an important part of our environmental commitment to deliver low-emission energy to our customers. The utility operates five nuclear units: Arkansas Nuclear One units 1 and 2, Grand Gulf Nuclear Station, River Bend Station, and Waterford 3 Steam Electric Station. The Nuclear Regulatory Commission has renewed the operating licenses for all nuclear units in Entergy’s utility fleet to beyond 2030.
The utility has limited coal resources, totaling 10 percent of owned and leased generation capacity, which produced only 6 percent of our utility’s 2019 energy mix. We have definitive plans to retire the majority of our coal-powered capacity no later than the end of 2030. We are also evaluating options for the remaining coal capacity.