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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

Virginia City Hybrid Energy Center Achieves Major Project Milestone

LCG, November 16, 2011--Dominion Virginia Power, a subsidiary of Dominion, announced that it started one of two boilers last Thursday at its Virginia City Hybrid Energy Center in Southwest Virginia. Construction on the 585-MW, baseload power project began in June 2008, and the facility is scheduled to commence commercial operations by next summer.

"First fire is a major milestone for the Virginia City project and signifies a shift from construction to a station focused on excellent operations," stated the chief executive officer of Dominion Generation, which operates power plants for Dominion Virginia Power.

The Virginia City Hybrid Energy Center includes two circulating fluidized bed (CFB) boilers designed to burn coal, waste coal and up to approximately 20 percent biomass (wood chips). The estimated cost of the project is $1.8 billion.

A condition of its air emissions permit is that Dominion will convert the oldest-coal burning power station in its fleet from coal to natural-gas, which will result in significant net reductions in various air emissions, including carbon-dioxide.

Dominion has made a commitment to have 15 percent of its electricity come from renewable sources by 2025.
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