U.S. power demand is set to reach unprecedented highs over the next two years, with consumption projected to grow to 4,090 billion kilowatt-hours (kWh) in 2024 and 4,158 billion kWh in 2025, according to the U.S. Energy Information Administration's (EIA) latest Short Term Energy Outlook released Wednesday.
This anticipated rise comes amid increasing electricity use across residential, commercial, and industrial sectors, driven by demand from artificial intelligence, data centers, and expanding electrification for heating and transportation.
For 2024, the EIA estimates power sales will climb to 1,492 billion kWh for residential customers, 1,426 billion kWh for commercial clients, and 1,027 billion kWh for industrial users. While these projections approach record levels, the anticipated consumption remains slightly below historic peaks set in recent years.
In terms of generation mix, natural gas is expected to maintain a significant share, holding steady at 42% of power generation in 2024 before easing to 40% in 2025.
Coal's contribution, meanwhile, is projected to fall from 17% in 2023 to 15% in both 2024 and 2025, as renewables gain traction. Renewables are set to increase from 22% in 2023 to 23% in 2024, reaching 25% by 2025, with nuclear energy remaining consistent at 19% over the period.
The report also highlights shifts in natural gas consumption, with residential sales anticipated to dip to 11.9 billion cubic feet per day (bcfd) in 2024, while sales for power generation are forecast to rise, setting a new record of 36.7 bcfd in 2024.
