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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

Press Release

Energy Storage - New Study Explores the Efficacy of Storage in Integrating Wind in Regional Electric Systems



LCG, August 2, 2010 – The Electric Power Research Institute (EPRI) and LCG Consulting jointly conduct a multi-region study to find out how energy storage can help in meeting Renewable Portfolio Standards (RPS) by providing an efficient means for integrating wind turbines to the electric systems.

The study contributes to better understanding of the physical and financial implications of expansion of wind generation. According to Dan Rastler, the EPRI Project Manager, “The project will focus on realistic market valuation of energy storage technologies with increasing renewable generation at different locations throughout the United States, across a range of future contingencies considering energy prices, fuel use, emissions and investment in new capacity.”

Results from the demonstrative study for ERCOT indicate that storage has definite beneficial role in smoothing the fluctuation in wind availability. The results also confirm the usefulness of storage in congestion management, and in deferring capacity investment. The study was conducted using LCG’s UPLAN Network Power Model and PLATO database for ERCOT.
In view of the encouraging findings in ERCOT, EPRI has decided to extend the scope of the study to other regions of the U.S. including New York ISO (NYISO), PJM, California and Midwest ISO (MISO). It also envisions the new study will cover several storage technologies such as Compressed Air Energy Storage (CAES), bulk and distributed battery storage, liquid air energy storage (LAES), flywheel and other fast response storage devices.
“The study will look into the issue of gaining adequate transmission access to load centers, by optimal use of existing transmission and as well as by identifying appropriate new transmission investments”, says Srinivas Jampani, LCG’s lead consultant.

About LCG Consulting:
With more than 25 years of experience, LCG Consulting is a pioneer and market leader in modeling the competitive energy market. LCG offers a full range of consulting services and specialized software products including the UPLAN Network Power Model and regional PLATO databases which are widely adopted for simulating electric systems.

Contact: Sidart Deb
LCG Consulting
650-962-9670
http://www.energyonline.com

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UPLAN-NPM
The Locational Marginal Price Model (LMP) Network Power Model
Uniform Storage Model
A Battery Simulation Model
UPLAN-ACE
Day Ahead and Real Time Market Simulation
UPLAN-G
The Gas Procurement and Competitive Analysis System
PLATO
Database of Plants, Loads, Assets, Transmission...
CAISO CRR Auctions
Monthly Price and Congestion Forecasting Service