According to the U.S. Energy Information Administration's Short Term Energy Outlook (STEO) released on Tuesday, power consumption in the United States is anticipated to hit unprecedented highs in both 2024 and 2025.
The EIA projects that power demand will climb to 4,112 billion kilowatt-hours (kWh) in 2024 and further to 4,123 billion kWh in 2025. This marks a notable increase from 2023's consumption of 3,994 billion kWh and the previous record of 4,070 billion kWh set in 2022.
The surge in electricity usage is attributed to a shift towards electricity for heating and transportation, replacing traditional fossil fuels. Residential consumers are expected to account for 1,530 billion kWh of power sales in 2024, with commercial customers at 1,396 billion kWh, and industrial customers at 1,035 billion kWh.
Comparatively, 2022 witnessed all-time highs in residential consumption at 1,509 billion kWh, commercial consumption at 1,391 billion kWh, and industrial consumption at 1,064 billion kWh.
The EIA projects that natural gas will maintain its position as the primary source of power generation, accounting for 42% of the total in 2024 and 41% in 2025. Conversely, coal's share is anticipated to decline from 17% in 2023 to 15% in 2024 and 14% in 2025, as renewable energy production continues to rise.
Renewable energy generation is forecasted to increase from 22% in 2023 to 24% in 2024 and 26% in 2025, while nuclear power's share will remain steady at 19% across all three years.
In terms of natural gas sales, residential and commercial consumption is expected to see an uptick in 2024, while industrial usage is projected to decrease. These figures contrast with historical highs observed in previous years.
Overall, the anticipated rise in power consumption underscores the evolving landscape of energy usage in the United States, with a notable shift towards cleaner and more sustainable sources of electricity generation.
