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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

Efficient Coal Generation Counted Towards Maine Renewable Target

LCG, Aug. 15, 2002--A requirement for 30 percent renewable-source power generation set within 1997 restructuring legislation in Maine is being met in part by cogeneration fueled by coal.

The allowance for coal being burned to produce both electricity and steam to help meet the renewables target was part of a compromise among legislators and interest groups, such as paper pulp mills. The percentage of power generated from varous sources is indicated to customers of Central Maine Power Co. in a regular status report. According to the report, the breakdown includes: oil, 26.3 percent; nuclear, 26 percent; coal, 18.2 percent; natural gas, 6.5 percent, for a total of 77 percent fossil fuels.

According to Maine's public advocate, Stephen Ward, coal is an "eligible resource" in meeting the 30 percent renewable target. It is considered so because cogeneration is a more efficient process than simple burning of coal for electricity alone. A note reads, "For the purposes of meeting the 30 percent portfolio requirement, 64.3 percent of the coal resource meets the eligible resource requirement of MPUC chapter 311." This means that "eligible resource" coal contributes 11.7 percent of the generation total, while biomass contributes 11.3 percent, hydro is at 10.3 percent, and municipal trash at 1.4 percent.

Some biomass plants in the state which produced power in 1997 no longer operate, due to their being uncompetitive.
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