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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

Southern Power Breaks Ground at Biomass Project in Texas

LCG, November 11, 2009--Southern Power yesterday held the groundbreaking ceremony for its Nacogdoches Generating Facility located in Sacul, Texas. The 100-MW power plant will be fueled with biomass, and commercial operation is scheduled to begin in the summer of 2012.

Southern Power, a subsidiary of Southern Company, acquired the project last month from American Renewables, LLC. Electricity generated from the power plant is committed through a 20-year, power purchase agreement (PPA) with Austin Energy, the municipal utility of Austin, Texas. Austin Energy has a 30-percent renewable energy goal by the year 2020.

The President of Southern Power stated, "This is an exciting time for Southern Power as we expand our presence in the wholesale market and diversify our fuel mix with a renewable resource....Southern Power has a reputation of helping its customers meet their energy needs in cost-effective, reliable and environmentally responsible manner and we're pleased to be a partner with Austin Energy on a project that supports their environmental goals."

When completed, the facility will burn forest residues, wood processing residues and clean municipal wood waste in a fluidized boiler to generate steam that will drive a steam turbine to generate electricity. The annual fuel required will be approximately one million tons, which is expected to be transported to the plant from within a 75-mile radius of the project site.

The construction period for the Nacogdoches facility is estimated to be approximately 32 months, and the total estimated cost of the project is between $475 million and $500 million.

The acquisition of Nacogdoches Power, LLC is a new venture for Southern Power into biomass fuels, as well as into the State of Texas. Southern Power currently owns and operates more than 7,700 MW of natural gas-fueled generation assets in Alabama, Georgia, Florida, and North Carolina.
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