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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

Kumeyaay Wind Project Commences Operations

LCG, December 29, 2005--San Diego Gas & Electric (SDG&E) began receiving electricity this week from the new Kumeyaay Wind Project. The wind farm, which has a generating capacity of 50 MW, was developed through a partnership between the global investment and advisory firm Babcock & Brown and GE Energy Financial Services. Babcock & Brown will be the long-term manager of the facility.

The Kumeyaay Wind Project consists of 25 turbines and is located in San Diego County on the Campo Indian Reservation, about 70 miles east of San Diego and 18 miles north of the Mexican border. The Campo Tribe will lease the land and receive payments on the electricity sold to SDG&E. The project schedule included an eight-month construction period and one month of testing.

The State of California's Renewables Portfolio Standard (RPS) Program requires each utility, such as SDG&E, to increase its procurement of eligible renewable generating resources by 1% of load per year to achieve a 20% renewables goal. The RPS Program is managed by California's Public Utilities Commission and Energy Commission.

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