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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

CA ISO Considers Decommissioning 1,700 MW Within a Year

LCG, September 24, 2002-The California Independent System Operator may shut down as much as 1,700 megawatts worth of old power plants.

Because older power plants produce more pollution, they must be retrofitted to meet new emissions standards. The cost of such alterations may be too high to warrant the continued operation of some older Californian plants, according to the ISO, and the grid operator may shut down plants as soon as next summer.

Choosing which plants to close will be a difficult process, considering that California does not suffer from a glut of generators and can ill afford to decommission plants offhandedly.

The ISO has not announced which plants it will consider decommissioning.
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