WSJ: Rockland Targets Gas-Fired Backup Power Plants With New $700 Million Fund
Rockland Capital, a Texas-based private equity firm, has raised about $700 million for investing in natural gas-fired power plants with its Rockland Power Partners IV fund, betting on their key role in stabilizing the U.S. power grid amidst increasing reliance on intermittent renewable energy sources like wind and solar. Recognizing the critical need for reliable backup power, Rockland focuses on quick-start “peaking” generators, particularly in Texas, where demand and renewable energy supply are surging. Beyond Texas, Rockland is expanding its investments in states like Georgia, New York, and Ohio, targeting areas with growing renewable energy integration. The strategy underscores a shift in the energy market, anticipating greater value in grid reliability services as renewable sources become more prevalent. The firm’s fundraising success reflects investor recognition of the essential role of gas-fired plants in the transition to renewable energy, despite a trend away from fossil fuels. Rockland’s portfolio also includes battery storage projects and solar developments, emphasizing a holistic approach to supporting the energy transition while ensuring grid stability.