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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

NRG Calls for More Extensive PJM Reserves Market

LCG, Oct. 14, 2002--A power marketer and supplier in the mid-Atlantic wholesale market, NRG Power Marketing, thinks that the PJM (Pennsylvania-Jersey-Maryland) Interconnection, the grid operator should adjust its spinning reserves market to reflect protocols in place in neighboring Northeastern market systems.

Changes have already been proposed by PJM to the Federal Energy Regulatory Commission this past August. While NRG finds the changes outlined represent an improvement, it would hope to see markets be expanded to include a day-ahead market, as well as both 10-minute non-spinning and 30-minute operating reserves. The power marketer said on Friday that modifications to reflect the New York ISO and ISO New England's markets could improve the PJM's ability to maintain 15 percent spinning reserves at all times. Such reserves are maintained to respond quickly to divergences between supply and demand.

In 2001, NRG claims, there were 66 instances in which spinning reserves were called to align supply with demand, lasting 11 minutes on average. The current PJM proposal concerning spinning reserves is under docket ER02-2519 with FERC.
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