Sept 24 (Reuters) - Privately held power generator Competitive Power Ventures (CPV) started construction on the $845 million Woodbridge natural gas-fired power plant in New Jersey on Wednesday.
The 700-megawatt plant, which will generate enough electricity to power about 700,000 homes, is owned by CPV, U.S. private equity firm ArcLight Capital Partners, and Japanese trading firm Toyota Tsusho Corp.
CPV said in a release the project is expected to enter service as soon as the first quarter of 2016 and will be operated by an affiliate of ArcLight. CPV is managing the construction process.
The project is expected to create nearly 500 construction jobs and two dozen permanent jobs once it starts operating.
The plant had been expected to sell capacity through a 15-year contract, called a Standard Offer Capacity Agreement (SOCA), with New Jersey utilities. However a federal court in New Jersey overturned the state law creating the capacity payments earlier in October.
Officials at CPV had no comment on the federal court decision earlier this month.
The plant will feature two of General Electric Co's 216-MW gas turbines and one steam turbine. GE has said it will manufacture the gas turbines in Greenville, South Carolina, and the steam turbine in Schenectady, New York.