Morgan Stanley to Exit Bayonne Energy Center Stake

Morgan Stanley Investment Management’s infrastructure arm has agreed to sell its ownership stake in Thermal Bayonne Holdings, LLC, the owner of Bayonne Energy Center, to Jupiter Energy Investor, LLC.  

The Bayonne, New Jersey–based facility supplies electricity, capacity, and ancillary services exclusively to New York City via a dedicated subsea cable system. Morgan Stanley Infrastructure Partners acquired the plant in 2018 and has managed it through its power asset management platform, TigerGenCo. 

“As the newest dispatchable generator serving New York City, Bayonne has demonstrated exceptional operational performance and plays a critical role in supporting New York’s grid reliability,” said Dan Barbosa, executive director at MSIP.  

Bayonne Energy Center is a 660‑megawatt dual‑fuel generating facility serving the five boroughs—known as NYISO Zone J, one of 11 geographic load zones overseen by the New York Independent System Operator to manage bulk power reliability and wholesale markets. 

The transaction is expected to close in the third quarter of 2026. Jefferies LLC served as lead financial advisor to MSIP.