Power plant 101: How a natural gas power plant is built and brought online

As New Jersey looks to address its resource adequacy issues for electricity, new natural gas generation is among the options available. Natural gas fired power plants offer dependable, around‑the‑clock output, efficient operations and cost advantages. Currently, natural gas fired plants make up approximately 43% generation capacity in PJM [1], which operates the high‑voltage grid, runs the wholesale power market and ensures reliability for New Jersey and 12 other states.

Building a natural gas fired power plant involves careful planning, permits and regulatory approvals and extensive community engagement before construction even begins. These plants typically take several years to complete and can generate hundreds of megawatts of electricity, enough to power hundreds of thousands of homes.

Before we begin, one important point to know: While we have a history of operating, and an understanding of what it takes to operate natural gas facilities in New Jersey, since 1999, state law currently does not allow electric utilities like PSE&G to own or operate power plants that sell power on the open markets.

So, what really goes into building a natural gas fired power plant?

Step 1: Finding the right location

Every project starts with location — and getting this right matters.

Developers look for sites that can safely support large equipment and connect to existing infrastructure. This typically includes access to:

• Natural gas pipelines to fuel the plant
• Water for cooling
• Transmission lines close by to move electricity onto the grid

Environmental considerations also play a key role. Sites are evaluated to help avoid wetlands and sensitive habitats. In some cases, developers may prioritize locations that previously hosted energy infrastructure, where certain elements may already be in place.

Step 2: Earning approval

Before any construction begins, projects must go through a detailed process, obtaining permits from local, state and federal agencies. These permits might cover air emissions, water use, noise and land disturbance. In the U.S., the Clean Air Act requires detailed reviews to ensure the plant meets environmental standards. This process alone can take one to two years, depending on the complexity of the project. Without permits, construction cannot begin.

Step 3: Community outreach

A power plant becomes part of the community around it. That’s why outreach typically begins early and continues throughout the project. Developers engage with residents, local officials and other stakeholders to share information, answer questions and hear concerns.

Topics often include air quality, traffic, and noise — both during construction and once a facility is operational. These conversations can help inform the project and may also highlight potential local benefits, such as job creation, tax revenue and infrastructure improvements.

Step 4: Constructing the plant

Once all approvals are in place, construction can begin.

The process generally includes site preparation, building access roads, installing utilities and constructing key components such as turbines, generators, cooling systems and control rooms.

Depending on the size and technology, construction can take approximately three to five years.

Some facilities use combined-cycle technology, which captures and reuses heat to generate additional electricity. These systems are typically more efficient, but also more complex to build.

Step 5: Generating electricity

Natural gas power plants come in several forms, each designed to serve different needs:

• Simple-cycle gas turbines are typically 40-300 megawatts and are often used for quick-start, peak demand
• Combined-cycle plants are larger and more efficient, often producing approximately 600-1,200 megawatts or more
• Reciprocating engine plants are smaller and modular, with individual units of 5-20 megawatts and total plant capacities of 50–200 megawatts

These technologies allow natural gas generation to scale from smaller, flexible resources to larger facilities capable of producing power continuously.

To put it into perspective, a 600-megawatt plant can generate enough electricity to power hundreds of thousands of homes, depending on usage patterns.

Producing an average of 600 megawatts from utility-scale renewable sources would require roughly 425 large wind turbines or about 5-6 million solar panels, since those resources are not available at all times. [2]

Why it matters

Building a natural gas power plant involves careful site selection, years of permitting and approvals, ongoing community engagement and multiple years of construction.

Each step is designed to meet regulatory requirements, incorporate stakeholder input and support safe and reliable operation.

Facilities like these can provide large-scale, dependable electricity and play a role in supporting overall grid reliability.

Understanding the process — from planning through operation — can help explain why these projects take time and how they fit into the broader energy system in New Jersey.