Record High U.S. Power Consumption Predicted by EIA in 2024 and 2025
The U.S. Energy Information Administration (EIA) has forecasted a significant increase in power demand for the years 2024 and 2025. According to their Short Term Energy Outlook (STEO) released on Tuesday, power consumption is expected to reach 4,093 billion kilowatt-hours (kWh) in 2024 and 4,163 billion kWh in 2025.
This surge in demand is attributed to the growing need for electricity in various sectors, including artificial intelligence, data centers, heating, and transportation. The forecast predicts residential consumers will account for 1,503 billion kWh, commercial customers for 1,412 billion kWh, and industrial customers for 1,033 billion kWh in 2024.
Renewable energy sources are projected to play a larger role in power generation, with their share expected to increase from 21% in 2023 to 25% in 2025. Meanwhile, coal’s share is predicted to decrease from 17% in 2023 to 16% in 2024 and 2025.
Gas sales are also expected to fluctuate, with a decrease in residential and industrial consumption but an increase in commercial and power generation sectors. These changes reflect the shifting landscape of energy consumption in the United States.
Overall, the EIA’s projections indicate a changing energy market with a greater emphasis on renewable sources and evolving patterns of power consumption across different sectors. Understanding these trends is crucial for investors and consumers alike to make informed decisions about their finances and energy usage.