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The U.S. Energy Information Administration (EIA) recently released its Short Term Energy Outlook (STEO), projecting a surge in power consumption to unprecedented levels in 2024 and 2025. According to the EIA, power demand is expected to reach 4,099 billion kilowatt-hours (kWh) in 2024 and 4,128 billion kWh in 2025. This marks a significant increase from the 4,000 billion kWh recorded in 2023 and the previous high of 4,003 billion kWh in 2018.
The rise in power consumption is attributed to the growing use of electricity in homes and businesses for heating and transportation, replacing traditional fossil fuels. The EIA forecasts that power sales in 2024 will reach 1,511 billion kWh for residential consumers, 1,396 billion kWh for commercial customers, and 1,042 billion kWh for industrial clients. These figures surpass previous records set in 2022 and 2000 for residential, commercial, and industrial customers, respectively.
The EIA also predicts that renewable energy sources will continue to gain prominence, with their share of power generation expected to increase from 21% in 2023 to 24% in 2024 and 25% in 2025. In contrast, coal’s share is projected to decline from 17% in 2023 to 15% in 2024 and 14% in 2025.
Additionally, gas sales are anticipated to rise in 2024 for residential and commercial consumers, as well as for power generation, before declining for industrial customers. These projections reflect historical trends in gas consumption across different sectors over the years.
Overall, the EIA’s outlook underscores the evolving landscape of power consumption and generation in the United States, highlighting the shift towards renewable energy sources and the continued demand for electricity in various sectors.
