The U.S. Energy Information Administration (EIA) anticipates a surge in power consumption, forecasting record highs for 2024 and 2025. According to the Short-Term Energy Outlook (STEO) report, power demand is projected to reach 4,099 billion kilowatt-hours (kWh) in 2024 and 4,128 billion kWh in 2025, surpassing previous records.
This uptick in electricity usage is attributed to increased adoption by homes and businesses, shifting away from fossil fuels for heating and transportation. Residential, commercial, and industrial customers are expected to drive the rise in power sales, with projections indicating substantial increases across sectors.
While natural gas will maintain a significant share of power generation at 42% in 2024, renewable energy sources are set to make gains.
The percentage of renewable generation is forecasted to rise from 21% in 2023 to 25% in 2025, reflecting a broader trend towards cleaner energy sources. Meanwhile, coal’s contribution is expected to decline from 17% in 2023 to 14% in 2025.
In terms of gas sales, residential and commercial sectors are projected to see increases, supporting the growing demand for electricity. However, industrial gas sales are anticipated to decline from historical highs, aligning with broader shifts in energy consumption patterns.
The EIA’s outlook highlights the evolving landscape of power consumption in the United States, driven by a combination of factors including technological advancements, changing consumer preferences, and environmental considerations.
