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Arbor Signs Agreement with GridMarket for 5 GW of Baseload Power

LCG, March 25, 2026--Arbor Energy today announced an agreement with GridMarket, an energy and infrastructure project facilitator, to deliver up to 5 GW of zero-emission power starting in 2029. GridMarket supports large energy users, including data centers, manufacturers, and logistics providers, with securing reliable and cost-effective power.

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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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Industry News

Plant Ready to Provide Peaking Power to Silicon Valley

LCG, Mar. 31, 2003--Calpine Corporation's 180-megawatt Los Esteros Critical Energy Facility is now operating as a peaking plant that will be able to provide capacity to the California Department of Water Resources and sell power on the open market.

The plant was sited in north San Jose, in an area not far from Calpine's downtown headquarters. Los Esteros is under contract to provide peaking power for up to 4,000 hours annually, and will receive payments that will average $38.8 million per year during the current three-year contract. When not serving these obligations, the plant can be operated as a merchant facility.

Bob Fishman, a senior vice president with Calpine, commented that "Silicon Valley has long been dependent upon imported electricity . By locating Los Esteros close to the power demand, Calpine can help overcome electricity transmission cosntraints as well as addressing supply issues." Of various high-demand areas within California, Silicon Valley, overlapping with the more formally named Santa Clara Valley, was cited by the California Independent System Operator as being one of the most electrically vulnerable due to a supply-demand imbalance.

The Los Esteros plant, consisting of four 45-megawatt gas turbines, was conceived as a cleaner alternative to 98 diesel generators that were first planned as a source of power for a power-intensive Internet campus owned by U.S. Dataport. U.S. Dataport is a developer of secure facilities serving Internet data service providers, and still plans to be a customer of the plant.
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