This move underscores the increasing importance of reliable power infrastructure to support the burgeoning demands of AI-driven data centers and the broader electrification of the economy.
Strategic Value Partners (SVP) a global alternative investment firm boasting approximately $22 billion in assets, revealed today that its managed funds have agreed to acquire Red Oak Power. The 831-megawatt natural gas-fired combined-cycle generation facility, situated in Sayreville, New Jersey, is a critical provider of low-cost, reliable power to customers across New Jersey and the expansive PJM Interconnection region.
Red Oak, which commenced commercial operations in 2002, is equipped with efficient natural gas-fueled CCGTs utilizing Siemens 501FD3 technology. Its established operational history and strategic location within a high-power demand area make it a highly attractive asset in the current energy landscape.
This acquisition is a direct result of the strategic partnership forged in 2024 between SVP and EverGen Power. EverGen, a power generation acquisition and asset management firm, was specifically established to facilitate SVP's investments in power generation assets throughout North America.
The increasing demand for electricity, particularly from the rapid expansion of AI-driven data centers, is a significant factor driving such acquisitions. Projections indicate a substantial surge in power consumption from these facilities in the coming years, making existing, efficient power generation assets like Red Oak Power highly valuable. The electrification of various economic sectors further contributes to this escalating demand, solidifying the importance of a robust and reliable power grid.
David Geenberg, Head of North American Corporate Investments at SVP, highlighted the efficiency of the acquisition process, stating, "With the benefit of EverGen's and SVP's industry expertise, we were able to move quickly and provide deal certainty on an expedited timeline." He also underscored the longstanding relationship and proven track record with the EverGen leadership team, referencing their successful collaborations on previous power sector investments, including the underwriting, restructuring, and operation of GenOn, a 12 GW merchant fleet, in 2018, and the recent acquisition of a managing stake in Birdsboro Power, another merchant CCGT in PJM.
SVP boasts a significant history of investment in real asset sectors, with approximately $2.4 billion invested in power assets since 2008. Beyond its majority ownership of GenOn Holdings, Inc. since 2018, SVP Funds have made substantial investments across a diverse portfolio of energy assets and companies. The EverGen team, led by Ari This acquisition positions SVP and EverGen strategically to capitalize on the growing need for stable and efficient power generation in the face of rapidly increasing demand.
