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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

Read more

Industry News

GWF Plans Central California Cogenerator

LCG, July 25, 2000--GWF Power Systems Company Inc. has asked the California Energy Commission for a Small Power Plant Exemption for a 98.7 megawatt gas-fired cogeneration plant the company plans to build in Hanford, a San Joaquin Valley town 25 miles south of Fresno.

The commission has exclusive jurisdiction to certify all sites and related facilities for thermal power plants in California that generate 50 or more megawatts, but can exempt power plants up to 100 megawatts from the power plant site certification process if it finds that no substantial adverse impact on the environment will result.

If approved, the Hanford Energy Park Project would be built on about 10 acres adjacent to an existing cogeneration power plant also owned by the GWF. The gas-fired plant would produce both electricity and steam with the electric power sold through direct sales agreements and in the spotmarket on the California Power Exchange.

A new 115 kilovolt transmission line a little over a mile long would be built to hook up the new plant. Water supply for the facility would be well water, and GWF says it has enough of that to meet the needs of the new plant and the existing one, too.

The commission said it would hold a public hearing on the Hanford Energy Park on August 2.

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