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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

France To Reform Renewable Permitting Process

LCG, Apr. 4, 2002--The French Industry Minister Christian told an annual conference devoted to the development of wind power today that the government will release streamlined permitting rules for wind and hydro facilities this year.

Pierret said that this was necessitated by the national goal of obtaining 21% of overall energy production from renewable sources by 2010. Currently, renewables, chiefly hydropower, account for 15% of output.

The rules being developed are likely to include guidance on wind power development in urban areas, and requirements for environmental impact studies and gauging of public sentiment for wind installations of 2.5 megawatts and above.

Pierret also commented that smaller-scale hydropower development has been unnecessarily stifled, and that environmental impact studies would be required of facilities producing 500 kilowatts or more. Grid access applications would be made uniform for all renewables.
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