A 1,200 MW gas-fired plant in California has filed for bankruptcy protection on Tuesday, citing “inhospitable” regulations and the increasing role of renewable energy in power generation, according to media reports.
La Paloma Generating filed for U.S. Chapter 11 bankruptcy in Delaware on Tuesday, amid a $524 million of debt.
In its filing, the company said this was on the back of market factors such as sluggish electricity demand and the rise in the contribution of renewable sources to overall power output in California, adding however these were "exacerbated by an inhospitable regulatory environment” Reuters reported.
La Paloma is owned by Rockland Capital, a private equity company that was formed in early 2003 in order to acquire and develop selected investment opportunities in the North American and European power and energy infrastructure markets.
Its assets are located throughout the United States with one in the United Kingdom and range between 1,875 MW to 5 MW of capacity fuelled by natural gas, coal, biomass, oil, flywheel, wind and solar power.