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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

Enron-owned Dabhol Plant Will Not Resume Operations

LCG, September 3, 2002The Dabhol power project, located in the Indian state of Maharashtra, will not resume operations to supply the surrounding area because a electricity rate cannot be agreed upon.

Officials in the electricity-starved western state had considered paying for power from the dormant plant, but plant owners found the offered price too low to make the plant financially viable.

Bankrupt Enron Corporation owns 65 percent of the facility, GE and Bechtel Corp. own 10 percent each, and the Maharashtra State Electricity Board owns 15 percent.

While 750 MW of the plant operated starting 1999, the 1444 MW second phase was never completed because the State Electricity Board did not stay current with payments by some $240 million.

The plant, which has been shut down for more than a year, awaits a price agreement between the state and plant owners. Bechtel Corporation has offered to restart the plant, but the Industrial Development Bank, on behalf of Dabhol creditors, refused the offer.

Civic groups and others have condemned the delay, and the Indian government wants to begin operations as soon as possible. Lenders will meet in Singapore later this week to discuss the plants future.

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