US Power Consumption to Reach Record Highs in 2024 and 2025
U.S. Power Consumption on the Rise
The U.S. Energy Information Administration (EIA) predicts that power consumption will hit record highs in 2024 and 2025, according to its Short Term Energy Outlook (STEO) released on Tuesday.
Projected Power Demand
The EIA projects that power demand will surge to 4,112 billion kilowatt-hours (kWh) in 2024 and 4,123 billion kWh in 2025, compared to 3,994 billion kWh in 2023 and a record 4,070 billion kWh in 2022.
Shift to Electricity Usage
As more homes and businesses opt for electricity over fossil fuels for heating and transportation, the EIA forecasts a rise in power sales in 2024, with residential consumers estimated to reach 1,530 billion kWh, commercial customers at 1,396 billion kWh, and industrial customers at 1,035 billion kWh.
Changing Power Generation Landscape
The EIA anticipates that natural gas’s share of power generation will hold at 42% in 2024, before dropping to 41% in 2025. Meanwhile, coal’s share is expected to decrease from 17% in 2023 to 15% in 2024 and 14% in 2025 as renewable energy output increases.
Renewable Energy and Nuclear Power
The percentage of renewable energy generation is set to rise from 22% in 2023 to 24% in 2024 and 26% in 2025, while nuclear power’s share will remain constant at 19% across these years.
Gas Sales Projections
The EIA projects a rise in gas sales for residential and commercial consumers, as well as power generation, in 2024, followed by a decline in gas sales for industrial customers.
