Houston power company NRG Energy's shares rose to a two-year high of $21.09, after it announced it will divest between $2.35bn and $4bn of assets, including most, if not all, of its national wind and solar power projects, as well as conventional power plants, in a cost-cutting exercise some have described as "baffling". NRG CEO Mauricio Gutierrez told analysts the measures would save $6.3bn in cash, and the firm would be "able to thrive under any market structure". The move comes amid growing concern about rising energy prices that are forcing companies such as NRG into costly restructuring.
Houston power company NRG Energy's shares rose to a two-year high of $21.09, after it announced it will divest between $2.35bn and $4bn of assets, including most, if not all, of its national wind and solar power projects, as well as conventional power plants, in a cost-cutting exercise some have described as "baffling". NRG CEO Mauricio Gutierrez told analysts the measures would save $6.3bn in cash, and the firm would be "able to thrive under any market structure". NRG's decision represents a rare reversal of strategy at a time when other utilities across the US are embracing renewables.