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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

Chinese Government to Break Up Power Company

LCG, Feb. 4, 2002--A plan issued by China's Politburo will result in a major restructuring of the State Power Corporation, separating its transmission grid and electric generation operations between independent companies.

The influence of the State Power Corporation will continue in a lesser form through its majority ownership of two transmission grid companies and at least three of four generation companies. Southern Power will operate the grid in the southern regions, while its counterpart, State Power Grid, will assume control in other areas.

Two of the generating companies, Beijing Datang Power Generation and Huaneng Power International, already have between 5 and 10 gigawatts of generating assets each, but will acquire more from State Power Corp. The other two, SP Power Generation and Guohua Power Generation, will have politically powerful connections - Li Xiaopeng, son of the second-ranking Communist party leader Li Peng, and the State Development Planning Commission, respectively.

Competition among generators will increase under the new arrangements, although the plan does not fully detail the role of State Power Corp., which is likely to direct some aspects of the market. By 2003, when new market arrangements will be in place, the government hopes that the new companies will have purchased most of the countrys independent, locally owned generators.
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